Report No. 12042-BO

BoliviaEducation Sector: A Proposed Strategy forSector Development and International AssistanceNovember 8, 1993

Country Department IllHuman Resourcen Operations DivisionLatin An.arica and the Caribbean Region

FOR OFFICIAL USE ONLY

MICROGRAPHICS

Report No: 12042 BOType: SEC

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may not otherwisebe disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit = Boliviano (1s)Bs 1.00 = US$0.25

US$1.00 = Bs 4.00

FISCAL YEAR

January 1 - December 31

ACADEMIC YEAR

February 8 - (Etober 31

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

CONAPSO Consejo Nacional de Poiftica Social(National Social Policy Council)

EMSO Economic Management Strengthening C,perationESF Emergency Social FundETARE Equipo Tecnico de Apoyo a la Reforma Educativa

(Technical Support Team for Education Reform)IDB Inter-American Development BankINE Instituto Nacional de Estadisticas

(National Institute of Statistics)MEC Ministry of Education and Culture (former)MPC Ministerio de Planeamiento y Coordinaci6n

(Ministry of Planning and Coordination)MPSSP Ministerio de Salud Piblica

(Ministry of Public Health)NEP New Economic PolicyNGO Non-Governmental OrganizationPPF Project Preparation FacilitySENALEP National Literacy and Popular Education ServiceSENET National Technical Education ServiceSIF Social Investment FundSNE Secretarfa Nacional de Educaci6n

(National Secretariat of Education)UDAPE Unidad de Anglisis de Polftica Econ6mica

(Economic Policy Analysis Unit)UDAPSO Unidad de Anllisis de Polftica Social

(Social Policy Analysis Unit)UNESCO United Nations Educational, Scientific, and Cultural

OrganizationUNICEF United Nations Children's FundUSAID United States Agency for International Developmen

FOR OFFICIAL USE ONLY

This report was prepared by Constance Corbett and is based on the findings of a seriesof missions that visited Bolivia from August 1991 through July 1993. The missions wereled by Constance Corbett: one or more missions comprised the following staff membersand consultants, whose written contributions form part of the background materials forthe paper: Carlos Rojas (EDIHR), Tarina Garcia-Concheso, Marta Helena Maldonado(LA3HR), Scott Quehl (LA3C1), Jean Paul Faguet (Resident Mission), Marfa ElenaAnderson, Henry Forero, Armando Godinez, Severiano Herrera, ingrid Jung, FelipeMorris, Nico van Niekerk, Oscar Oszlak, Fernando Reimers, Jorge Sabato, MargaritaSalinas, Alfredo Sarmiento, Jorge Enrique Vargas, Protase Woodford (Consultants). Thefollowing representatives of international and bilateral agencies also participated in, orconducted joint missions with, one or more missions and provided oral or writtencomments that contributed to the development of the strategy: Olivier Berthoud(Switzerland), Hanke Koopman (the Netherlands), Britt Sj6stedt (Sweden), Betty Rice,Xavier Comas, Stephen Doherty, and Mario Loterszpil (anter-American DevelopmentBank). Patricia Rodrfguez coordinated production of the report, and Marta Cervanteshelped produce the graphs.

The education reform strategy presented in the paper was developed by the BolivianTechnical Support Team for Education Reform (ETARE), which also produced a numberof background papers. In addition, Amalia Anaya, Enrique Ipifia, and Luis EnriqueL6pez provided helpful comments on earlier drafts of the paper.

This document has a restricted distribution and may be used by recipients only in the perfor' ar.ceof their official duties. Its contents may not otherwise be disclosed without World Bank autho i

BOLIVIAEDUCATION SECTOR

A PROPOSED STRATEGYFOR

SECTOR DEVELOPMENT AND INERNATIONAL ASSISTANCE

TABLE OF CONTENTS

BASIC DATA, E ............................................... i

EXECUTIVE SUA RY ........................................... v

1. INTRODUCTION ............................................... 1

2. THE EDUCATION SECTOR ....................................... 4Ovetview .................................................... 4

Performance ............................................... 4Organizaion ............................................... 6

Selected Isues in Educadon ...................... 7Weak seor management ....................................... 8

Sector fimaing ................................................... 10Problems of access and quality . ................................... 13

Inappropriatecontent .............. ......................... 13Baers to acces to education for girls ............................ 15ndequate teaher trang .......................... ........ 16

Deficient infrastructure . ..................................... 18

3. THE GOVERNMENT'S STRATEGY FOR EDUCATION .................... 18Development Objecives ............................................ 18Requirements ........................ 19Strategy Framework .................. 20

Key reform measures ........................ 20Institutional framework ........................ 21Community participation ......................... 21Fbinancal rationalization plan ........................ 23Educational quality .................. 23Access, equity, and efficiency .................. 23

4. PHASE I OF THE REFORM: ACTION PLAN ............ ............... 24Objectives ................................................ 24ActionPLn .................................... 25

Trnsforing and Strenheng the System ..................... 26improving pedagogical quality ......... .......................... 29Supportig the reform process .................................... 32

S. POTENTIAL ROLE OF EXTERNAL DONORS AND LENDERS ..... .......... 32Proposed Assistance Strategy ........................................ 32IDA Assistance ................................................ 33

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Other Extenal Supp .................... 33

6. BENEFiTS AND PISKS . 34Benefits 34Difficulties and isks.34

ANNEX .37

SELECTED REFERENCES ................... ... 45

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BASIC DATA SEET

A. General Coury Data Year Source1. Population Estimt (milions) 7.3 1991 b2. Popuation Projection (millions) 10 2000 a3. GNP per Capita (USS) 650 1991 b4. GNP per Capita - Red Grwth Rat (%) -2.0 1980-91 b5. Urban P laon (as % of Totd) 51 1990 a

.Social Indicator1. Crude bitth riat (per 1,000) ,36 1990 a2. Crude death rate (per 1,000) 10 1990 a3. Averge Anual Rote of Popuon Gwth () 2.5 1980-91 b4. Total Fertily Rate (birhs per woman) 4.8 1991 b5. Ifant Mortality Rate (per 1,000 live births) 92 1990 a6. Mateml Morty Rate (per 100,000 live births) 480 1980 a7. Life Expectancy at Birth (years) 60 1990 a8. Female Labor Fore (% of total) 26 1991 a

C. Education Data1. Grow Elroument Rates (% of age group enrolled)

Primary 80 1992 eSecondaty 30 1992 eHighe 24 1982 f

2. Distribution of age group enrolled, urbarual (S)Prnmary

Urban 61 1990 cRund 39 1990 c

Urbn 94 1990 cRura 6 1990 c

3. Effiienc DataStdent/Teacer Ratio (Prima) 16:1 1993 eDropout Rates (% per year)

Primay 5.4 1990 cSecondary 7.9 1990 c/d

Repeiton RatesPrimary 2.5 1990 dSecondary 12.1 1990 diteaty Rates

Female 29 1990 aTotal 23 1990 a

4. Expeditu DataTotal Public Education Spending as a % of GNP 4.2 1992 eTotal Public Educaton Spending as a % of Central Govt. budget 20.6 1992 eShares of Public Education Expenditurs (including earmaked taxes)

Preschool 2.8 1992 ePrimary 41.2 1992 eSeconday 8.9 1992 eHigher 30.1 1992 eOte 18.0 1992 e

Sourc: a World DevWop.mtRepon, 1Mb Mm World Ada, 1992c Educadv hkar Socai, Ahuto Nsonl de EdWica, Dic. 1992d Raadtadca ,! -.- , MOilm, y AsociadO, 1992.a BrAEf UDAPSO

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EXECT "VE SUMARY

L. The high level of functional illiteracy (55 percent) and low average level of schooling (4years) indicate that Bolivia's education system fails to provide basic education to most of itspopulation. This failure is a primary constraint on Bolivia's economic development and is one ofthe principal causes of the country's deep-seated structural poverty. A strong consensus hasemerged over the past two years concerning the need for reform of the country's education system,and the new Govermnent that took office in A-agust 1993 has placed such reform at the top of itsagenda. The strategy preEented in this paper reflects the proposal developed by the Government'sEducation Reform Technical Support Team (ETARE) with support from IDA and other agencies;the new Government has adopted the proposal.

ii. Underlying problems. The poor coverage and quaity of Bolivia's education system stempartly from relatively low levels of speading on educaton over several decades (averaging 2.7ercent of GDP between 1986 and 1991). Several other factors are also important in explaining

its failings: (a) alienation and exclusion of the primary beneficiaries-children, their parents, andthe society as a whole-from participating in the decision-making process and from the right toscrutinize operations and results; (b) weak administration of the system; (c) inappropriate andinefficient management of sector financing, including insufficient aRocation of resources to primaryeducation; (d) various barriers to access and obstacles to educational attainment, includinginappropriate or irrelevant content, inadequate provision of textbooks and instructional materials,inadequate teacher training, inattention to the needs of non-Spmish-speaking populations, anddeficient infrastructure, which particularly affect girls and rural populations.

iii. Longerm obecthves. Ihe Government's overriding goal for the education sector is toraise the average education level of the population sufficiently to transform it from a principalconstraint to economic growth into one of the driving forces of Bolivia's economic development,in an increasingly competitive and technot3gically demanding inteaonal environment. For thisto happen, the system must, in the next 20 to 30 years, achieve full coverage at primary andsecondary levels and reach internationally competitive levels of quality and performance for alllevels of the system. Accomplishing these objectives will clearly require major changes in the level,efficiency, and effectiveness of spending and service delivery, including: an improved institutionalframework with participation of local communities in the education process; rationalization of sectorfnancing; improvement of the professional level of the teaching force; incorporation of elementsof cultural diversity in the education process; encouragement of private sector prticipation,especilly at higher levels; upgrading of primary and secondary education infrastructure andprovision of new infrastructure to permit achievement of full-coverage targets at primary andsecondary level:.

iv. At current fertility rates, the school-age population is expected to grow by nearly 50 percentin 20 years. Full coverage of this projected populatan, with provision for quality improvement,will require substantial investment over at least 20 years in infrastructure, equipment, fuiniture,library resources, and teacher in-service training, as well as strong increases in recurrent spending.Taken together, the requirements for attaining the objectives outlined above represent an averageof 6 percent of projected annual GDP for the next 20 years.

v. To accomplish its long-term objectives, the Government has defined a phased developmentstrategy. The first phase, to be carried out over five to seven years, would establish the policyframework for the reform and implement key reform measures, introduce quality improvements,and initiate the long-term process of transforming the curriculum and the pedagogical and

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institutional capacity. Subsequent phases would cotiWnue to strengthen institutional capacity,especially at regional and local levels, while placing increased emphasis or providing direct inputsto strengthen quality and expand the coverage of the system.

vi. Fist phase of the reform. In line with the overall strategy, measures to be undertakenin the first phase of the reform focus on two broad areas: system transformation and improvementin pedagogical quality. W'hile improvements to the institutional framework would directy benefitall non-university levels, quality im'nrovement interventions during the first five years would focusexclusively on the primary level.

vii. System asformation vnuld include the introduction of structura changes to reorganize,deconcentrate, and strengthen the pre-university education system. Reorganization would consistof:

* restructring the new National Secretariat of Education (SNE);

* establishing a decentralized organizational framework for the pre-university educationsystem; and

intoducing a system of community consultation and oversight of the education processthrough establishment of councils with specific attributes and responsibilities at alllevels.

The new organizational framework will be strengthened and transformed by:

* ntegratng technical, professional, and administrative personnel at the central anddepartmental level into the Civil Service Program;

* taining and providing technical assistance for technical and administrative personnel atcentral and deconcentrated levels;

* disseminating informatin and providing technical assistance for community and parentorgaizations; and

* establishing an information system to support curriculum development, educationassessment, teacher training, provision of textbooks and materials, and investmentplanning.

Establishing a new framework for management of the teaching force will include the introductionof new criteria and systems for teacher certification, hiring, promotion, assignment, and benefits,and systems for management information and payment of teachers.

Viii. Improvement of pedagogical quality would include a program of short-term qualityenhancement through provision of school equipment and materials, including basic didacticmaterials, teaching guides and other pedagogic aids, and in-service teacher training programs.Support for long-term pedagogical transformation would consist of:

* development of a core curriculum beginning with grades 1 through 8;

* development and provision of textbooks, materis, and teachers' guides;

I vii -

* expansion of a teisted bilingua education program;

* development and application of pre-service and inservice teacher training programs;

* development of training pre.grams for school administrators and pedagogicalsupervisors; and

* development of an education assessment program.

ix. Support for the reform process would involve the establishment of a team under the SNEto manage, monitor, and provide technical support for the reform process. A program ofinformation dissemination and promotion of public dialogue would aim toward building consensuson the reform. The first phase of the reform could include technical assistance projects aimed attackling aspects of sector development that will not receive explicit focus in the first supportoperation, such as plans to improve the efficiency and quality of the universities.

x. International support wil be essential to implementation of the proposed education reformprogram because of both its sheer magnitude and the technical support it will require. -Closecoordination of international assistance will be essential, particularly XN the first phase of the strategywhen the demands of establishing institutional capacity will leave little implementation capacity foradditional unrelated activities. Costs of first-phase programs requiring international financinginclude:

- technical assistance and training costs;

* acauisition and distribution of instructional materials and textbooks;

* infrastructure rehabilitation and remodeling;

3 installation of an educational management information system, including related trainingand technical assistance;

* development of an education assessment program; and

* logistical support for information dissemination and community traiing.

xi. There is unanimous agreement in Bolivia that the education system is failing and that reformis needed. Nevertheless, the education reform strategy under consideration is ambitious anddifficult; it must be envisioned as a process, involving not only a complex set of actions, but alsothe participation of -nany diverse groups. Managing the reform process will require firmcommitment and strong leadership by the Government over several Administrations, as well assustained support from the international community. It will be helpful to start the reform programin the early days of the new government, especially to ensure continuity of strong leadership duringthe critical first years of the program.

BOLIVIA

EDUCATION SECIrOR

A PROPOSED STRATEGY FOR SECITOR DEVELOPMENTAND

INTEPRN4TIONAL ASSISTANCE

1. INTRODUCTION

1.1 Bolivia was one of the first countries in Latin America during fte 1980s to adopt a far-reaching economic program aimed at restoring price stability and restructuring Lte economy.The country has reduced inflation (to about 12 percent in 1992) and regained modest realgrowth (about 4 percent in 1991 and 3.4 percent in 1992) through a program of tight fiscal andmonwtay policies coupled with structural reform and complemented by reduction of the debtand debt service burden. The structural reforms were designed to reduce state participation inthe economy, to improve public sector finances, to foster private investment, and to enhanceproductivity and competitiveness. Nevertheless, Bolivia's economy remains fragile: prices forits major exports are in decline, it is vulnerable to adverse developments for a small numberof markets and commodities, and it is heavily dependent on external aid. Moreover, the rmodesteconomic growth achieved in the past five years has not afforded much reduction in poverty.Government estimates suggest that over half the population is poor; the effects of poverty arefelt especially by vulnerable and marginalized groups--women, children, indigenous and mralgroups. Athough social indicators show some improvement compared to levels of 10 yearsago, they remain among the worst in the western hemisphere.

1.2 At present, the low level of basic education is a primary constraint on Bolivia'seconomic development, and the poor coverage and quality of education are among the principalcauses of Bolivia's deep-seated structural poverty. As shown by ample experience elswhere(See Box 1.1), raising the education level of the population is essential to advancing economicdevelopment and reversing the country's deep and enduring poverty. Over the past 12 to 18months, the importance of addressing these serious problems has grown in public awareness.A pragmatic consensus has emerged among the major political parties concerning the need toreduce and rationalize the role of the state and to move the social agenda forward. Reform ofthe country's education system is a central part of this agenda.

1.3 Ihis paper reviews the current condition of the education sector. It identfies theobjectives and provides global cost estdmates for achieving the twin goals of long-termsustainable economic growth and poverty reduction. It then outlines a strategy for achievingthe proposed sector development, including concrete measures tc be taken during the first fiveto seven years of the reform process, and discusses the potential role for the internationalcommunity in supporting the realization of the strategy. The strategy presented was developedby the Government's Education Reform Technical Support Team (ETARE) with support fromIDA and other agencies. The new Government that took office in August 1993 has declaredits full commitment to education reform and has adopted the ETARE proposal.

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Box 1.1: The Secret to Creatng Virtuous Cycles

Recent Bolivian Goverments have placed proity on achieving rapid, susaiable growth with gnrter lequity, improved standards of living, and reduction of poverty. A numbor of East Asian ecmomies haveachieved remwkable success i attaining these goals, stimulatng analysis to find the keys to theirextraordinary performance.I One of the main conclusions of this analysis is tbat improvements in thelevel of educational atainment of the population (both in quantity and quaity) is one of the strongestfactors explair.ing their success in breaking out of poverty's vicious cycle. More specificaly, thefollowing observations emerge:

* Expaon of primry education is the largest single predictor of the East Asian economies' highgrowth rates. More geneHally, statistical analysis of 113 economim shows that an increase of 10percentage points in the primary enrollmnt rate raises per capita income growth by 0.3 percent.2

* Public spending concentrated on primry and secondary education, wbile demand for teriaryleducation was largely abaorbed by a self-financed private system. Allocating public resources toprimary and secondary educaton was the major determining factor in East Asia's successful educationstrategies, resulting in universal primaiy and widely available secondary education.

* Average edational at_nment is higher than in other middle-income economies.

* In spite of cultural norm that often discouraged education of girls, the differences in enrolment ratesfor males and females were reduced faster in high-perforning Asian econonnes than in otherdeveloping countries.

* Because of the emphasis on pnrmay and secondary levels, publie funds for edaion are more likelyto benefit children of low-income families who might otherwise ha e difficulty remiiMng in school.This has contributed to a more equitable distribution of income in these countries, which, in turn, isassociated with growing demand for education at all levels and a growig interest and abiity amongfamilies to invest private resources in thelr children's education-setng up a viros cycle in whichhigher educational attainment, economic growth, poverty reduction and improvement of socialindicators are mutually reinforcing and self-perptuating.

The graphs in Figure 1.1 illustrate that Bolivia falls far short of achieving the effective coverage atprmary and secondary levels achieved by high-performing East Asian economies 20 yeas ago. YetBolivia spends only slightly less of its GNP on education thin these economies but much less of itseducation budget on basic education. (Among developing counries, only Costa Rica, Venaezuela andJordan-all three of which have virtually full coverage at pnmary and secondaty levels and reativelyhigh capacity for financing education in general-dedicate a greater share of public resources to highereducation). Left unchanged, this pattern will slow efforts to raise average levels of educationalattainment in Bolivia, making the achievement of economic sucess elusive.

1. 'he Est Asian Miiacle: Economic Growth and Public Policy,' Wodld Bank Policy Rseatch Repoa, Discusson Daft, July1993.

2. Ibid, p.47.

--- ~- i_ .- , -- . _ .... _==

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MFg. 1.1: Spending on education as a percentage of GNP and allocation of budget to higher versus basic education:Bolivia compared with high-performing East Asian economics and others.

A. Enrollment and Completon Rates S. Percentage of Stdents whoat Primauy and Secondary Levels Complete Secondary Educaton

100@ 1 70

40 a ~~~~~~~~~~~~~40.80

0Ma olbMa Maysla Korea(women) (men *t

HItinWil lVrominft 1 3Pd [I s y(women) (my an)

C. Percentage of Labor Forme who D. Public Spending on EducatonCompleted Secondary Education as a Percentage of GOP

10 8

1 ~~~~~~~~~4 i

10~~~~~~fv* Val 197 I" n n

c1078 60W191S Hcr4Ka Kore. 1970 1878 1980 160 1t6

NPES-W&e fo 4 NgWpemafaV Ead AbISource: Woodd Bank UNESCO: Statstloe Ysabook, UDAPSO 0ew HOanQ4 8w . S. am. Mut*

Graphs A through C developed by USAID.

Allocation of Education Budgets

Publi¢ Public % of Education % of EducationExpenditure Expenditure on Budget Allocated Budget Alocated

on Education as Basic Education to Higher to BasicEconomy a % of GNP as a % of GNP Education Education

Korea, Rep. 3.0 2.5 10.3 83.9

Malaysia 7.9 5.9 14.6 74.9

Hong Kong 2.8 1.9 25.1 69.3

Thailand 3.2 2.6 12.0 81.3

Bolivia 3.5 1.8 5S.0 32.0

Source: UNESCO Statistical Yearbook, 1992, ETARE, UDAPSO

2. THE EDUCATION SECIOR

O ,rview

Performance

2.1 Available data indicate the inadequacies of the basic education system:

* About 20 percente of the adult population are illiterate, having never attendedschool, while 55 percent are functionally illiterate.

* Of the illiterate population, 70 percent live in rural areas (42 percent ofBolivia's population is rural) and 68 percent are women.

* On average, the adult population has had 4.0 years of schooling, and only 37percent has finished primary school.

* Coverage of the system ranges from 60 percent of children 6 thulgh 14 yearsold in rural areas, to 87 percent in urban areas. (Tbese are gross fligures andinclude repeaters; net coverage is substantially lower.2)

e Only about 9 percent of the population in rural areas attend one year of schoolbeyond primary level.

2.2 These results revs al a system providing inadequate coverage and relatively low-qualyeducation. The underlying causes are interrelated and include such socioeconomic factors aspoor nutrition, illiteracy of the parents, and absenteeism in rural areas due to children'sparticipation in crop tending or harvest, as well as elements inherent in the educational systemitself.

2.3 The system is also plagued with gross inefficiencies (see also Table 2.1):

* Low student-teacher ratios, averaging 15:1 at primary level and 13:1 atsecondary level. Ratios at primary level vary from 16:1 in urban areas and13:1 in rural areas.

* High dropout rates; only 43 percent of children enrolled in primary school inurban areas and 11 percent in rural areas continue beyond the fiffh grade.

* High rates of repetition, between 23 and 31 percent for primary grades in 1987-88, compared with an average of 14 percent in other Latin American countries.

1. According to the 1992 cons. Other estimates suggest 35-38 percent may be more accuate.

2. Dat for attendance by age and gmade are insufficient to permt calclation of not coverage.

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Table 2.1: BOLIAEDUCATION

Sected Performance and Efficneny Ind satoa by Level

Pre- Primy Scoondary Univ. Tech./ Normal Otherprima (1-8) (9-12) Voc. SchoolS

Studen Tacher Rat ifn _ 15:1 13:1 22:1 11:1 - -(13:12")

orm 30 so~~~8 30 24G ̂ ~~~~~~30 80 24 24_ -_

Complelion nw

.Percentofagegroup - 10 22 0.9 - - -

. Percent of initialenrollca n level S6.6 27 43 18" 15 - -

. Peret of studnts 27 12 -who began lst grade

(US$ )qWlt

Percent Of fiscaleducation budget (1992) 3.1 45 10 21 0.7 1.7 17.5

. Percen of total publicexpenditur oneducation includingcarmadwd axes 2.8 41 9 30 0.7 1.5 15.8

. Per studet (annual,1992) 57 72 101 S6o 250 350

. Per child of age group(annual) 1S 49 21 - - - -

.Per opleter 863 398 15,4S64' 2,747

Sources: ETARE, INE, UDAPSO, Ministerio de Finanzas, based on 1992 data.Notes:

1. Includes cental and departmnal administrave cosb; special and adult education.2. Includes administrtors.3. Repren studns completing five years. Graduation rates range from 1 to 7 peroent.4. Represens annual costs per student completing five years. Acual costs per graduae are

estimated at over US$35,000.

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* High levels of functional illiteracy among school leavers and among graduatesof various levels of the system.

* High costs per graduate (those who satisfy all requirements) at each level of thesystem, particularly at higher levels, ranging from US$863 at primary level toover US$35,000 at university level, where graduation rates range from 1 to 10percent and average 4.4 percent.

2.4 Since 1.4 student years are required for each school year completed, each primaryschool completer costs approximately 40 percent more than would be the case with no graderepetition. Repetition at primary level alone is estimated to cost the system someUS$30 million a year. In addition to the financial costs, these inefficiencies are costly in termsof lost human capital, and they compound the difficulty of addressing problems of lowcoverage and quality. Problems of inefficiency are significantly more severe among the twochildren out of tree whose mother tongue is not Spanish.

Orgaization

2.5 The structure and operation of Bolivia's education system is decreed in the 1955 Codeof Bolivian Education (the Code). Under the Code, the Minister of Education heads theeducation sector. The new government that took office in August 1993 introduced areorganization of the executive branch, which establishes, under a new Ministry of HumanDevelopment, a National Secretariat of Education (SNE) that includes all of the componentsrelated to education of the former Ministry of Education and Culture (MEC). As nosubstantive changes have been made yet to the structure or functions, the institutional analysiscarned out with respect to the old MEC and the proposals and recommendations developed forits transformation apply to the SNE. Accordingly, reference in this paper will henceforth bemade to the SNE; the "National Secretary" refers to the head of the SNE and is understood tohave aUl of the authorities vested in the former Minister of Education under the Code.

2.6 Although the National Secretary also has a coordinating role with respect to theuniversities, the Code establishes the autonomy of the public universities, which have not onlyassumed academic autonomy, but until recently have also asserted their freedom from publicscrutiny and accountability. The Govermnent shares responsibility for this distortion of theprinciple of academic autonomy by having neglected, until 1992, to insist on normalaccountability for use of public funds. In practice, then, the public education system is dividedin two parts: (a) primary schools, secondary schools, and non-university programs under thedirect or indirect authority of the SNE and (b) the nine autonomous universities, which areindependent of both the SNE and each other.

2.7 The SNE has direct or indirect authority over the non-university formal educationsystem, various informal programs for adults, the 27 normal (teacher training) schools, and fiveautonomous institutions: the Bolivian Cultural Institute, the National Literacy and PopularEducation Service (SENALEP), the Educational Press, the Book Bank, and the NationalTechnical Education Service (SENET).

2.8 Non-university education is classified as "regular"--grades 1 through 12 and pre-primary--and "special," such as technical and vocational education, adult education, andliteracy psrograms. Regular education is organized in two levels: primary (grades I through 8)and secordary (grades 9 through 12). Primary is further divided into a basic cycle (grades 1through 5) and an intermediate cycle (grades 6 through 8). In rural area, the basic cycle isfurher subdivided, with central, "nucleus" schools providing grades 1 through 5 and satelliteor "sectional" schools in surrounding communities providing grades 1 through 3 only.

2.9 The Code specifies that primary education is mandatory for all children, while pre-primary and secondary education are optional. In an effort to democratize education and exendit to the rural majority, the Code established a rigidly homogeneous curriculum for primary andsecondary levels intended to bring the marginalized rural poor into the Spanish-speakingcultural and linguistic mainstream. Twin administrative structures for urban and rural educationwere inended to ensure that adequate resources would be channelled to rural areas. Thisdesign has failed to produce the intended results: the inefficient dual structure has continuedto channel substantially more resources to urban areas in absolute terms and per student. Ihevirually uniform content of textbooks and materials (in the few cases where they are available)has made access for marginal groups more difficult, rather than unifying the country culturallyand linguistically.

2.10 Plarticipation of the private sector, non-governmental organizations, and theClurch. Private sector participation in education has grown rapidly at all levels in recentyears, particularly in low-income urban areas. In most instances, the growth reflectsdissatisfaction and lack of confildence in the education available in public schools anduniversities. In particular, numerous private primary schools for ten students or less have beenset up by individual teachers, generally conducted in their homes, usually in inappropriateconditions and always without supervision or guidance. Enrollment in private schools of alltypes represents some 12 percent of total enrollment at primary and secondary levels. Theparticipation of NGOs in formal education is limited almost exclusively to the Catholic Church,principally through Fey Akgr(a, Escuelas de Cristo, and Escuelas Populares Don Bosco. Suchorganizations generally operate through agreements with the Government under which theorganization manages the schools and the Government hires the teachers. It is estimated thatbetween 12 and 14 percent of all children enrolled in school attend a Catholic school. TheCatholic Church also manages a normal school and the Catholic University. Other religiousgroups, such as the Methodist and Evangelical Churches, manage a smaller number of schools.A much larger number of organizations provide informal and non-formal education programsand support services, such as traiing programs, rural boarding facilities, and multiserviceeducation centers.

Selected Issues in Education

2.11 The results reveal a system failing to meet minimum goals of access, equity, efficiency,and effectiveness. The causes of the poor results and inefficiencies in the system include:

0 Alienation and exclusion of the primary beneficiaries--children, their parentsand commnities, and the society as a whole---from participating in thedecision-making process and from the right to scrutinize operations and results.

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* Weak administration of the system.

* lnappropriate and inefficient management of sector financing, includinginsufficient allocation of resources to primary education.

* Various barriers to access and obstacles to educational attainment, such asinappropriate or irrelevant content, inadequate provision of textbooks andinstructional materials, inadequate teacher training, and deficient infrastructure,which particularly affects girls and rural populations.

2.12 Many of these factors are interrelated, each compounding the effects of the others. Thecombined result is a chaotic system that fosters inefficiency and corruption-including theproliferation of "ghost teachers' on the payroll--explaining why attempts to introduce qualityimprovements have not been successful beyond the pilot stage and why the overall dysfunctionof the system must be addressed in order to bring broad-based improvements to the classroomlevel.

Exdusion of beneficaries from key decisions

2.13 While Bolivian comnunities, especially parents, routinely make cash and in-kindcontributions to their children's schools, they have no voice in decisions directly affecting theirchildren's education and welfare, such as selection of teachers, choice of school calendar,language of instruction, and content of materials. Community evaluation of teachers'attendance or behavior is not sought or accepted. Administrative authorities are habituallyunresponsive, even to strong community protests regarding teacher absenteeism, abuse ofchildren, theft, or other misbehavior. This distancing of the educational establishment from itsclients is the result of strongly centralized decision making, cronyism, and corruption. Toachieve real improvements in the quality, transparency, and efficiency of education at theschool level, parents and local conununities in general must be enfnchised and vested withlegitimate authority in decision making and in overseeing aspects of school and teacherperformance and the use of funds. A central feature of the Government's strategy for systemtransformation is a plan to bring about this change.

Weak sector management

2.14 Overall institutional weakness in the SNE underlies the poor performance of the sector.The weaknesses include:

* An excessively complex and illogical administrative structure, lacking clarity offunctional deflnition and assignment of accountability.

* Extreme centralization of authority, which, combined with weak management,results in fragmentation of the system.

* Lack of appropriately trained personnel in administrative positions and in theteaching force.

* Lack of policy or capacity for managing human resources.

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* Inadequate management of financial resources, stemming in part from rigiditiesresulting from the inflexible wage bill and essential expenses.

* Encroachment of the teachers' union into many aspects of human resourcemanagement, including compensation, promotion, and assignment, eitherthrough written agreements or by practice popularly regarded as backed by thelaw.

2.15 lbrough a variety of written and unwritten agreements, during the past 50 years, theUrban and Rural Confederations of Teachers, the two national teachers unions, haveprogressively encroached into decision and policy making in general and human resourcemanagement in particular. This resulted from a series of historical events and social andcultural phenomena peculiar to Bolivia. Although Governments from the 1950s onward werepublicly committed to the principle of full coverage of education, public education for themajority of the population was considered essentially a "public assistance" or welfare servicerather than an indispensable condition for the political and economic development of thecountry. Government decisions regarding education were based on short-term politicalconsiderations rather than on longer-term developmental objectives.

2.16 Meanwhile, the labor unions had targeted teachers as an important constituency andexerted steady pressure to participate in, and eventually to control, nearly all decisions. Theunions were successful. Today, the Confederations of Teachers have some 60,000 to 70,000members (the exact number is difficult to establish) and are allied with the umbrella group, theConfederation of Bolivian Workers (COB). In the wake of mine closings in the mid-1980s, theteachers' unions are the largest of the unions under the COB. While membership in the unionsis legally optional, an informal agreement provides for automatic deduction of union dues fromeach teacher's paycheck.

2.17 Union leaders include a growing number of individuals looking for constructivesolutions to problems, as well as an entrenched group of extremists for whom all governmentproposals are unacceptable by definition. Negotiations are typically conducted against abackground of national teachers' (and often general) strikes that historically have produced theintended effect of pressuring the Government to accede to union demands.

2.18 Education reform and the development of the sector in general must involveparticipation of teachers. The teachers' union can play an integral role in various aspects ofthe process, particularly in strengthening the overall level of competency of the teaching force.Examples of this kind of constructive union participation exist in Latin America (e.g., Chile)as well as in other regions. For this to occur, however, there must be a transformation in theunion's approach to relations with the government, from opposition in principle to mutualcollaboration. A key aspect of the reform strategy is establishing mechanisms for dialogue andincentives to foster development of a new relationship between the Government and the union.

2.19 Highly centralized government and administration of services, as well as weak localpublic institutions and low population density, make service delivery especially difficult andcostly in rural areas in Bolivia. Proposals to decentralize political and administrative authorityto departmental level have been under debate for the past year, but no agreement was reachedbefore the Congressional recess. Discussion is expected to resume in the 1993-1994 session.Regardless of the political decision, however, effective decentralization will require support to

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build local institutional capacity. In the case of education services, decentralization is vital toimprove efficiency. Therefore, the Government's reform program would 'deconcentrate'authority to the departmental level or below, while helping to build capacity at lower levels.(See Box 2.1) If or when political decentralization is adopted, the administrative structure canbe transferred to the appropriate level of departrental or local government. Thecomplementary structure of school, local, and higher education councils would already be inplace to help assure effective decentralization.

Sector finaning

2.20 Bolivia's poor educational results are partly due to the relatively low share of centralGovernment spending on education, which averaged 2.7 percent of GDP from 1986 to 1991,compared with an average for Latin America of over 4.0 percent. (See Figure 1.1) Equallyimportantly, inefficient resource allocation within the sector reduces returns to public spendingon education. These inefficiencies must be addressed before increasing the overall resourceallocation to the sector.

2.21 Resource allocation is strongly skewed toward higher levels of the educational system,where efficiency and social rates of return are lowest. The total allocation to post-secondaryeducation represented nearly 31 percent of total public spending on education in 1990, nearly29 percent to universities alone. (See Figure 1.1) Bolivia places fourth among developingcountries in the proportion of its budget spent on tertiary level education. Ibis pattern hasincreased dramatically in recent years: the allocation of resources from the current budget touniversities nearly doubled in real terms from 1990 through 1992, while real allocations to therest of the sector have fallen steadily since the early 1980s. In addition to budget allocations,a legally fixed share of the proceeds of certain earmarked taxes is also transferred touniversities, totalling about US$14 million in 1990, representing about 30 percent of publictransfers to universities and 27 percent of total university spending. These earmarked resourcesvary widely by department, from close to zero in Beni, Pando and Potosf, to substantialamounts in Santa Cruz.

2.22 In addition to the disproportionate distribution of resources, universities' use of thoseresources is far from efficient.3 About 90 percent of stUdents complete a standard programof 10 semesters, but far fewer (less than 4 percent) complete all requirements for graduation.Moreover, a majority of students who-over 60 percent, according to surveys-take far longerto complete their programs than the supposed standard 10 semesters. The minority of studentswho finally graduate take even longer to complete all requirements. Thus, the average cost pergraduate reaches over US$35,000 per year.' External efficiency is limited by the narrow rangeof disciplines offered, the largest enrollments being in law and tourism. The quality of

3. Few data are available oan the details of either financing or internal efficiency of higher education. Beginning in1992, universities began to provide financial reports to the Govment. The Unit for Analysis of Social Pbli(UDAPSO), created in 1992, has begun to analyze these data and plans to provide tehnical assistance to severaluniversties to analyze inte efficiency.

4. The percentage of each cohort enroed that actually gaduates is as low as 1 perccnt in some progams and mayaverage 5 to 7 percent There is no data on the average time taken by graduates to complete their requimneAt,though anecdotal infonnation suggesb tbat 10 to 15 year is not unusual. Therefre, wbile the total cost of producingeach graduate cannot be calculated with precision, it exceeds the calculated annual average cost per graduate.

Box 2.1: Induding the Community: een ization, Doc aon and Local Participaion

Bolivia's current politicalladiinisttive framework operates at three levels:

* The central Govemme-nt is responsible for delivery of most services, including education, throughcentral ministies.

* Prefects, appointed by the President, administer departmntal (state) governmnts.

* Mayors, who are direcdy elected, head mcipal govenments, although muicipalities do not coverthe entire territory or population.

Neither d tal nor municipal authoities currently have the technical or financial capacity toundertake responsibility for delivery of services, and their authoity to establish and collect taxes isseverely limited.

Decentralization of Bolivia's political/administrative framework is cuntly under conisideration. Under

* The central nmistry or national secretriat would retain overall policy-making responsibility, settingnational guidelines. In the educaton sector, this would include establishing basic curiculumrequirement and standards for teacher traimng. It may also include establishg cntena for persomelmanagement, investment plaming, and the national educational budget, as well as the authority toapprove dta budgets and monitor the management of fiscal transfers within the system.

* Lower levels of goverment would assme the operational and adminis ve authority as well asfinancial rsoibiity for service delivery, though often with supplemental transfers from the centrlGovernment.

Debate on the form and pace in which decentalization should be carried out is ongoing, and discusionto resolve oubtading issues may be prolonged. In the meantime, the ineffectiveness and inefficieociesstemming from the centralized admiistration of education must be addressed.

The education reform proposal would deconcentate authority within the National Secretriat of Educatin(NSE) as an interim step. Under the deconcenyted sstem the NSE would delegate minitration andmanagement authority to its departmental units. Departmental nuagers would receive directdisbursements from the NSE. Deartmenl units would be further subdivided into disticts and nscdeos.

Commnumity Paripation: To make any education system tmly accountable to the people, parents andlocal communities must be involved in critical decision makig and in evauating the performance ofservice providers. In addition, the school must serve as a commumty resource, the center for com_mitytraining programs and other extracurricular activities, thus allowing community to assume its newresponsibilities and parents to better underand and carry out ther role of supportig and reinfowcing theeducation of their children. To set this process in motion from the outset of the education reform, schooland local councils would be created. These councils would actively participate with local NSErepresentatives in such matters as teacher selection, budget allocation, language of instruction, and theswhool calendar, and would provide continuing oversight of the education system at a community level.Beause they would be more direcdy accountable to the comnmunities in which they work, teachers andadminikstators would be more nsive to beneficiaries' needs. (See Box 3.1) One of the key objectivesof decentralition would thus be achieved even before decentraliaon per se takes place.

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education universities offer is questionable when measured against international standards, andtheir production of research is close to zero. Achievement of long-term goals will requirestrengthening the quality and efficiency of the universities and establishing an appropriate levelof Government subsidy in funding their operation. It will also be necessary to explore thepossible role of the universities in areas such as pre-service teacher training.

2.23 Of the total resources allocated to pre-university education, 95 to 98 percent is absorbedby salaries of teachers and administrative personnel, while nearly all of the remainder must beused for essential operating costs, such as electricity and water charges. (The averageallocation for salaries in Latin America is about 75 percent and ranges from 60-85 percent).There is no allocation for maintenance of infrastructure; in rural areas, the communitiesthemselves are generally responsible for maintenance, while in urban areas, parents' groupsundertake any maintenance carried out and often contribute materials. Allocations for textbooksand materials have been insignificant since 1980; while it is sometimes asserted that thematriculation fee of about US$3 is used to cover the costs of textbooks, there is little evidencethat this actually occurs.' Attempts to increase the share of the budget dedicated to teachingmaterials and textbooks have failed because of constant pressure to increase teachers' salaries,which have effectively absorbed any increase in education's share of total public spending. Atthe same time, average teacher compensation is low, averaging about US$1,250 per year, asis productivity: the average teacher's work week is only 15 hours of class time.

2.24 Total infrastructure investment for non-university education has remained small relativeto total public spending in the sector and to total investment. While enrollments have morethan doubled at both primary and secondary levels since 1980, investment in education wasclose to zero from 1980 through 1986 and averaged less than 2 percent of total investment(about US$5.8 million) since 1987, including the amounts channeled through the EmergenqySocial Fund (ESF). Although increased investment financing has been channeled through theSocial Investment Fund (SII), which has provided financing for projects in health and educationsince 1991, SIF's current program for education will not filly address the sector's investmentneeds. The nature of investments planned for education---about $10 million to $15 million peryear-is largely appropriate, focussing on upgrading existing facilities, mainly at primary level.The level of investment required to achieve needed gains in coverage and qualit in basiceducation, however, is greater than the current level of planned investments-far greater, infact, than the average annual public investment in education over the past three decades. Foreven the current level of investment to achieve its intended benefits, the effectiveness andefficiency of delivery of education services will need to be improved. The proposed reformprogram includes an action plan for restructuring sector ffinancing with a view to achievingmore efficient and equitable allocation of resources.

S. Revenues from mtriculation fees and from other fees adminitered at the discretion of school authrities aregenerally not recorded at the central level and are therefore not included in the firs on expendiur shown in

is paper. Similarly, parets' or communities' contribution to contuction and maintenance of infratructure isnot recorded.

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Problems of access and quality

2.25 Inappropriate content. nappropriate content of public education in Bolivia isfrequently cited as a principal cause of poor quality and represents an important barrier toaccess in some circumstances. This problem has several aspects: lack of focus on basic skills,content irrelevant to students' lives and needs, and lack of attention to the needs of studentswhose mother tongue is not Spanish.

0 Weakness of instruction in basic skills-reading, writing, mathematics, andbasic science-results from lack of prioritization of learning objectives in thecurriculum (equal weight is given to crafts and to basic math), from a lack ofpedagogical quality standards for textbook selection, and from weak teachertraining. The last factor contributes to the other two, since teachers in the SNEboth define the curriculum and select the textbooks. Since only teacher trainingschool graduates are permitted to teach in teacher training schools, the problemis perpetuated.

* Irrelevant content is a particular problem in rural areas, where studentsgenerally spend no more than three years in school-barely sufficient to providebasic literacy skills--and where little reading material is available in school orin the community. Rural teachers are often the least competent and, partlybecause of the lack of reading materials, are generally unaware of the potentialutility of literacy and numeracy in a rural setting. As a result, lIteracy andnumeracy are generally perceived only as necessary sUills for people moving tothe city, and the majority of the rural population loses the minimal skillsacquired in school through disuse. While official figures indicate that only 18to 20 percent of the adult population is illiterate, in reality more than half theadult population is functionally illiterate.

* Lack of attention to the needs of students whose mother tongue is notSpanish not only reduces students' achievement, it constitutes a barrier toaccess and contributes to high repetition and dropout rates. In particular, suchstudents must achieve literacy in their native tongue as a pre-requisite formastery of, and literacy in Spanish. (See Box 2.2)

The reform program confronts these problems directly through curriculum reform, materialsand textbook development, provision of in-service teacher training, reform of pre-servicetraining, and expansion of a tested bilingual education program.

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Box 2.2: Why bilingual educwaton?

Some 60 percent of the Bolivian population does not speak Spanish as a mother tongue; some 1Spercent are monolingual in a non-Spanish language. Thirty-one indigenous languages re spoken,categorized linguistically in 9 major groups. The inability or to speak, or weak mastery of, Spanishis associated with low access to education, high dropout and repetiton rates (repetition rates amongindigenous groups is nearly double tiat for the population as a whole), and low income, constentwith the situation of marginalized ethnic minorities in other countries (Figure 2.1). Bitingualcapability (i.e. mastery and literacy in both the mother tongue and Spaish) among minority ethnicgroups gives them the flexibility to work in the economic mainstram and increases individualproductivity and self-esteem.

The proposed strategy to develop and strengthen bilingual education has been adapted for Boliviaunder a pilot project supported by UNICEF from a model originally developed in Puno, Peru. Underthis model, basic reading, writing and other skills are taught in the mother tongue in the first grade,while Spanish is introduced as a second language. In grade t40 and beyond, instuction isprogressively shifted to Spanish, and by grade six all instruction is in Spanish, while readinginstruction in the mother tongue contnues through grade eight. The latter aspect of the program isbased on findings in several countres-including the United States, Sweden, Mexico, Peru, andBolivia-that achievement of fluency and literaq in a second language depends on mastery of literacyin the mother tongue.

Resuts of the Puno project indicate that for students in the biligual primary-school program:

* Performance and school attendance, particularly among boys in rual areas and among gidsoverall, rises to levels comparable with those of bilingual or Spanish-speaking students.

* Reading comprehension and problem-solving skills are significantly higher than those ofstudents from comparable linguistic and socio-economic groups in traditional, non-bilingualprograms.

Incremental costs of bilingual education programs are reduced as they are expanded, as planned underthe education reform. More importandy, the small additional costs are mote than compensated byimproved student performance and reduced repetition and dropout rates. Materials have already beendeveloped for three language groups (Aymara, Quechua, and Guatani) and have been tested byUNICEF. Under the reform program, these materials would be revised, and their application wouldbe expanded to reach additional bilingual areas. Materials would also be developed for the majorgroup of languages spoken in the Amazonian region.

The conertone of successful bilingual eduion programs is parental support. Expeience in severalcountries, including Bolivia, demonstrates that educatng paretts in the nahtre of such programsconvinces them of the programs' benefits for their children and for their communities, and involvingparents in implementing and evaluating the program ensures their support. Under the educationreform, the bilingual program will be discussed in school councils prior to its introduction.

While implementation of such programs may encounter many difficulties-the risks of which mustbe realisticaUy asessed-failure to undertake systematic efforts to provide access to instruction inthe language of the economic-and educational-mainstream is to effectively deny access to betterincomes and living conditions for nearly two thirds of Bolivia's population.

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Fig. 2.1: Inbility to speak Spais is assoiated with lack of a tD schoolng and low icomes.

A. Highet LIwd o Slohoonbg And I. HIghest Ivu d _duaan AMW4by gm mwd E&Wo 3roup by LAMgMW Group

X~~ ~~~ -}'-

W~ Men Us Mn ^ ~

.Pdmuy ESsaWis 1y WAf_ IOMM"nr MU-W Ed.

0. duaon and eIary byEthnlo Group hn SloIs

_rcgwx Wdlasmus r.

E~~~~~~ a

Wl~a"WM.UdM EnWAesfleNO-SW F_* ePoqA I

2.26 Barriers to access to education for girl. Nearly 70 percent of adult illiterates inBolivia are women, and in rural areas, female illiteracy is frequently 100 percent. Only onepercent of girls who enroll in flrst grade eventually finish high school. Since virtually all healthand education indicators are positively correlated to the level of education of women, these datahelp explain the high rates of infant and maternal mortality (92 per 1,000 live births and 480per 100,000 live births, respectively), fertility, malnutrition, school dropout, and graderepetition. (See Box 2.3) As a rule, dropout rates for girls are higher than for boys in bothurban and rural areas, partly because girls are frequently required to help with child care andother domestic chores. In rural areas, girls normally attend a maximum of three years ofschool-the highest grade offered at the majority of rural schools; boys are more likely to beallowed to attend a central school offering more grades.

2.27 As a result of these high absenteeism and dropout rates, most girls remain functionallyilliterate, and the benefits associated with basic education for women are not realized. Factorsposing barriers to access for girls include: lower value placed on girls' education by parents,resulting in unwillingness to pay any required costs; security concerns, especially where theteacher is male or the distance to school is relatively great; and the fact that most schools inrural areas offer only three grad.ts. Drawing on successful experiences in other countries, theGovernment's reform strategy includes an action plan to increase participation by girls.

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Box 2.3: Educating girls: investing In development.

Studies undertkn by the World Bank and other insitutions show that higher levels of education of womenare positively correlated vrith increased levels of life expectancy-both male and female-lower fertilityrates, lower infant mortality, and higher per capita GNP' Reducing the difference between male and femaleenrollments while generally expanding basic education is cost-effective: desired improvements in socialindicators can be achieved at lower levels of economic growth by closing the gender gap. At the sametime, closing the gap makes achievement of higher levels of growth possible by tapping more of thecountry's productive potential. Although girls' enrollmes ae rising gradually in Bolivia, they are stillsignificantly behind those of boys, compared to other Latin American countries, most of which havesuccessfully eliminated the gender gap.

What to do? The reasons for the persistent gender gap are relat to security concerns as well as toeconomic and factors and social attitudes and values. While parents' fears for the safety of their daughtersmust be addressed in their specific context and may not be easy to overcome, experience in other countriesshows that providing parents with accurate information regarding the real benefits of educatng theirdaughters can help alter their perception of both economic and traditional factors. Pets are nore willingto pay both the opporunity and financial costs of girls' schooling if they are aware of the benefits to thewhole family. Fear that educatng girls will erode traditional cultural values can be eased by emphasis onthe positive impact of girls' education in traditional female roles, such as childrearg and family nurturing.Information campaigns to increase parents' awareness of these benefits have been successfl in rasing girls'enrollments iw several countries, including Guatemala, which, like Bolivia, has diverse monolingualindigenous populations.

Paents' belief in the value of educating their daughters is not eough Attention must also be given toensuring the availability of textbooks and instructional materials, and to their content Incorpoating baicprinciples of hygiene, health care, and domestic science reassures paents of the relevnce of schooling fortheir daughters' everyday lives, while eliminatg gender bias and providing female role models in textbooksis important in broadeing both girls' and boys' expectations of women's roles in the family, community,and society as a whole. Innovative programs, such as the Interactive Radio Learing Project supported inBolivia and other countries by USAID, can help to implement such measures more quickly and effectivelythan reliance on textbook modifications alone. (See Box 2.4).

1. ug andA MU, 1993

Measures include public awareness campaigns, training for teachers and school administrators,and incorporafting gender-sensitive criteria in the development of textbooks, materials, andteachers' guides.

2.28 Inadequate teacher training. There is virtually unanimous agreement, even amuongteachers, that teacher training is inadequate. Several factors contribute, most of which relateto the current arrangements governing the terms and conditions of teachers' employment:

* Teachers' salaries have deteriorated in real terms for more than a decade,reducing the incentives for qualified candidates to become teachers and forqualified teachers to teach.

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Box 2.4: Enhancing classroom inputs: innovative experiences

Bolivia's teachers work with formidable disadvantages. Apart from a physical working environmentthat is generally unsuitable and often unsafe, more often than not they lack the most basicinstructiona materials. Even when they have mAerials, they frequently lack the basic skills andtnrining to use them effectively. Providing materials and tmining progams for teachers is essentialto overcome these problems. However, the process of strenging the teaching-learning processin the classroom can be slow using only teacher-training programs, especially when teaches havelittle ongoing supervision or coaching to gain confidence and build their skills. Strengthening schooladminstraton-a central feature of schools managed by Fe y Alegrfa-is another essentl ingedientto effecting change at the school level and has been shown to make a perceptible difference insupporting and strengtheing the teacher's effectiveness. Programmed material have been used withremarkable success in coyjunction with teacher training programs in many countries. Sevealinnovative approaches to enhancing teachers' effectiveness, such as the rd-o leaning projectsupported in Bolivia by USAID, have had remakable early results. Applied first to matematicsinstruction in the second through fifth grades, this project had a measurable impact on sudents'scores on mathematics tests, compared with stdents taught in traditional programs. Radio-learningmethodology, expanded and rmodified to incoporate an interactive approach, was applied in a follow-up project that included a health and hygiene currculum aimed at upper primary-school children andcommunity members. It is hoped that the focus on basic health knowledge combined with practicalactivities that are within the means of the child, targeted at boys and girls in the formal school en-vironmeat, will both model attitudes and change the behavior of children, which will have a beneficialeffect on their siblings and entire families. Preliminary evaluations of the health component alsoshow positive results.

* Rigid restrictions, such as those prohibiting teachers to teach more than oneshift in the same school, increase the diffliculty of working a full day atteaching, making it essentially a part-time activity and increasing the difficultyof making a living.

* Restrictions exclude anyone but teacher-training school graduates--evenuniversity graduates--from receiving a full teacher's salary.

* Only teacher-training school graduates can teach in the teacher-training schools,perpetuating the deficiencies in content and focus of teacher training over time.

2.29 The reform program envisions a three-pronged approach to improvement of teachertraining: short-term programs to improve teachers' basic skills and ability to use new materialsand methods, measures to improve pre-service training, and continued strengthening ofteachers' professional skills.

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2.30 Deficient infrastructure. While aggregate figures suggest that lack of infrastructureis not the main cause of the system's inadequate coverage, several factors contributing to lowcoverage relate to infrastructure. Rural emigration to urban areas has led to growing urbanpopulations with inadequate access to schools, while infrastructure in some rural areas hasbecome underutilized. Many existing schools are in severe disrepair, creating hazardousconditions in some cases, and most lack basic equipment and sanitary facilities. In rural areas55 percent of schools are built to offer only the first three grades and are based on the urbanmodel of one classroom per grade. The problem of providing adequate access to small,dispersed populations presents the challenge of developing an infrastructure design appropriateto the rural reality. The reform program envisions a systematic approach to tackle theseproblems through a series of infrastructure investment projects to be undertaken once theprocess of institutional transformation is underway.

3. THE GOVERNMENT'S STRATEGY FOR EDUCATION

Development Objectives

3.1 The Government's overriding goal for the education sector is to raise the averageeducation level of the population sufficiently to transform it from a principal constraint toeconomic growth into one of the driving forces in Bolivia's economic development in anincreasingly competitive and technologically demandg international environment. For dtis tohappen, the system must, in the next 20 to 30 years, achieve full coverage at primary andsecondary levels and reach internationally competitive levels of quality and performance for alllevels of the system. Achieving these goals will reduce adult illiteracy and functional illiteracyto insignificant levels. The system must also develop the capacity to produce interntionallycompetitive graduates in technical and professional fields, in numbers sufficient to lead anddevelop Bolivia's economy in an international context.

3.2 In view of the current condition and level of performance of the education sector,achieving these objectives will clearly require major changes in the level, efficiency, andeffectiveness of spending and service delivery:

* A flexible institutional framework with incentives that encourage efficient useof resources by both public and private sectors.

* Participation of local communities in the education process.

* Rationalization of sector financing.

* Management of public universities that includes guidelines for increased costrecovery through increased maticulaon fees and reduction of subsidies forroom and board, balanced with policies to achieve equity through scholarshipsand loan programs.

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* At the university level, guidelines to improve external efficiency throughinternationally competitive programs in key fields and full accountability for thespending of public funds.

* Improvement of the professional level of the teaching force through provisionof an improved pre-service training program, compensation appropriate to theprofessional level and quality of service rendered, and provision of a system ofin-service training to assure continuous strengthening.

* Incorporation of elements of cultural diversity in the education process with aview to strengthening access to education and the mainstream economy for thenon-Spanish-speaking population, and to educating the Spanish-speakingpopulation to the full cultural heritage of the country.

* Encouragement of private sector participation, especially at higher levels(universities, technical/vocational programs) to help increase the internal andexternal efficiency of tertiary programs.

* Upgrading of primary and secondary education infrastructure to assure itscompliance with minimum standards of safety, sanitation, and basic equipmentand furniture.

X Provision of new infrastructure to permit achievement of full-coverage targetsat prinary and secondary levels.

Requirements

3.3 The level of effort required to accomplish these objectives is massive. At currentfertility rates, the primary-school age population is expected to grow by about 46 percent in 20years. Full coverage of this population, with provision for quality improvement, will requiresubstantial investment over at least 20 years in infrastructure, equipment, furniture, and libraryresources (estimated at about US$1,784 million) and teacher in-service training (aboutUS$240 million). In addition, recurrent costs would increase to cover additional teachers,improvement of teachers' compensation, in-service training, and provision of textbooks andmaterials, reaching US$307 million annuly in 20 years-an increase of 160 percent overpresent levels.6 Taken together, these requirements for meeting coverage and quality goals atthe primary level represent an average of 4.3 percent of projected GDP for the next 20 years.Achievement of the coverage and quality objectives for secondary level implies an additionalinvestment of about US$1,180 million and annual recurrent costs of US$145 million,representing about 1.7 percent of projected GDP. Current levels of public transfers touniversities would add another 1.0 percent of GDP, bringing the total commitment to around7 percent of GDP. (See Annex)

6. Estimates m basd on the foliowing assmptios: a stude-teacher saio of 30:1; an averag of 40 students perclasiom; single shifts for all schoos; repition rate of 15%.

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3.4 This level of expenditure is high: public spending on education averages 4 percent ofGDP in Latin America. Bolivia's shortage in installed capacity stems from the fact thatspending on education has fallen consistently below averages for other Latin American countriesfor the last 20 to 30 years; the continued high fertility rate compounds the problem. Therefore,higher-than-average spending levels over the next 20 years are required to achieve theobjectives. Failure to allocate the necessary resources will involve tradeoffs in terms of less-than-desirable levels of coverage and quality improvements. Failure to reach coverage andquality targets will perpetuate the existing drag on economic growth and the persistent cycleof poverty resulting from the population's low level of education.

3.5 At the same time, improving efficiency within the sector is imperative. Qualityimprovements will help increase efficiency by reducing the costly repetition rate, but it is alsonecessary to find additional resources to reduce the burden on the fiscal budget. These mustinclude increased cost recovery, especially at higher levels, and greater private sectorparticipation, particularly in technical and vocational education.

Strategy Framework

3.6 The intermediate actions needed to attain long-term goals demand a logical andcoordinated institutional framework, staffed with compet and motivated personnel. A priorcondition for introducing and generalizing quality improvements at school level is establisbngthe capacity within the system itself for operation, planning, and development. The combinedprogram will demand continuous, intensive effort for at least 20 years. A strategy to carry outthis effort must take into account that it is a dynamic process, the results of vhich will bedetermined in the course of its implementation, not by any predetermined blueprint. Thestrategy must be designed in phases and must follow a critical path based on both the directactions necessary to accomplish the desired educational goals and the prerequisites forimplementing those actions. Emphasis must be placed on ensuring that management of thereform process has both the capacity and the authority to respond to unexpected events andoutcomes by modifying action plans as necessary.

3.7 With this in mind, the Government has defined a first phase of the development strategyto be carried out over five to seven years. This program would establish the policy frameworkfor the reform, introduce quality improvements, and initiae the long-term process oftransforming the curriculum and the pedagogical and institutional capacity. Subsequent phaseswould continue to strengthen institutional capacity, especially at regional and local levels, whieplacing increased emphasis on providing direct inputs to strengthen quality and expand thecoverage of the system.

Key reform measures

3.8 In line with the overall strategy, measures to be undertaken in the first phase of thereform focus on: establishment of an adequate institutional framework, effective mechanismsfor community participation, a systematic plan for financial restructuring, specific actions toimprove educational quality in both the short and long term, and specific measures to improvethe equity, access, and efficiency of the system. While improvements to the irstitutionalframework would directly benefit all non-university levels, quality improvement efforts would

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begin with primary education and evenually cover both primary and secondary. During thefirst five years, quality improvement interventions would focus exclusively on prinary level.

3.9 Insitutional framework. The reform program envisions a reorganization andstrengthening of both the SNE and the system for service delivery at primary and secondarylevels. Measures to achieve this transformation include:

* Establishing the legal framework necessary to permit, among other things, anew organizational structure, including administrative dec-incentration andintroduction of mechanisms to ensure community participation in key decisionsconcerning education.

* Implementing action plans to achieve the institutional changes.

* Restructuring the framework for managing human resources throughout thesystem in general and for the teaching force in particular, including a revisedteacher compensation system based on qualifications.

* Strengthening the system's technical and administrative capacity byncorporating the restructured SNE into the Civil Service Program andintroducing incentives for continued improvement of the professional capacityof the teaching force.

* Establishing a system of community participation to guarantee fte enfran-chisement of the community in the life of the schools and in the educationsystem as a whole.

* Establishing a management information system to facilitate collection andanalysis of data needed for operaing and developing of the education systemand eliminating ghost teachers from the payroll.

3.10 The SNE would retain policy making responsibility, such as developing basic nationalcurriculum requirements, setting standards for teacher training and personnel management, andconsolidating a national investment plan and operating budgets. Operational responsibilitywould be deconcentrated to the departmental and local level; once a framework for publicsector decentralization has been established, authority for administration of the system (in-cluding budgeting and planning) would be transferred to the departmental or municipalgovernments.

3.11 Community paricipation. Introducing mechanisms to achieve effective participationof parents and communities affects not only the institutional capacity of the system but also itsresponsiveness to the requirements of communities, its transparency, and its quality. An in-tegral part of the proposed organization includes councils for community ovewrsight, approval,and consultation at each ievei. (See Box 3.1)

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3.12 The School Councilwould comprise parents and Box 3.1: lonclding the people: making scbool councgs workcommunity members; the Local Council would corn- 0 comli aiipation in key tOCisiO118 iS ess8ential to makI]ingLocal Counctd representatives any system, govermental or private, accountable to its bene-prise elected representatives ficires. The success of the educaon reform program in Boliviaof several the School Coun- wil Wm on the degree to which school cocdils can becils. At higher levels, empowered and enabled to asume these p biities.councils would also includerepresentatives of larger Factors associated with effective mechanisms of commityorganized groups, such as |paticipation include:private sector groups andIregional development cor- A clearly defined legal framework that allows resentativeporations. Eachl council school councils to function with real decision-maldng authority.would be responsible for * Estabishment of non-politicized school and local councils,reviewing and approving tmly represntative of the common interests prevalent withinkey decisions at the the community.corresponding level, such asselection of key personnel, * Election of rvresentves to higher-level educatonal boardsbudgets, yearly operating by local school councils, rather than by politcal appointment.

plans, school calendars, and * Tming for council members and community authorities inselection of materials, how to carry out their duties responsibly, including objective

l awssment of financial rsonsbilities and operatdonal3.13 The proposed plan parforcewould require the SchoolCouncil to approve all * Timely and reliable reportig by school admsrator to theappointments of principals school council on finaci eenditurs, fcilites manage-and leachers as well as the ment, teacher and student performance, and other perinentyearly budget, and to report admbve information.on resource use. School * Timely provision of informaton by the central and depatment-Councils would also be al authorities on ionovative activities in other schools or aeasasked to evaluate aspects of and on the performance of the system in general, as com-teacher performance, mi parators against which to measure progress and to stimulateparticular, class attendance local initiatives.and treatment of children.The operational plan for the o Paticipation of the school council in the school budget, in-first phase would include a cluding allocation of central govenment transfers as well asdetailed plan for introducing contributions in cash and in kind from the community.

community participation inthese critical decisions in allcommunities. Some communities would assume additional responsibilities, depending on therespective Council's interest and capacity for organization and for review of detailed plans.

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3.14 Fnancial ationz n plan. Achieving a more rational, efficient, and equitable useof resources for the education sector will require a systematic plan to accomplish several goals:

* Reduce the relative share of the sector budget allocated to the universities, whilerequiring improvements in cost recovery and efficiency.

* Encourage greater private sector participation, particularly at higher levels.

* Eliminate ghost teachers at primary and secondary levels and apply savingsfrom such measures-as well as from efficiency gains as they are realized-toincreases in teachers' pay, linked to increased training and greater productivity.

* Gradually increase budget allocations for textbooks and materials.

* Recognize parents' and communites' contributions in cash and in kind to schoolbudgets.7

* Address infrastructure needs according to clear priorities by level andgeographic area.

3.15 If requiements for the sector are to be met, overall resource allocation to educationshould also be increased over time. While resources for education may be expected to growwhen true decentralizaion is introduced and local governments undertake more responsibilityfor provision of education services, in the early years of the reform responsibility for financingeducation will remain with the central Government. This underscores the fact that coninuedeconomic growth is essential for the success of the education reform progrmn.

3.16 Educational quality would be improved by upgrading the quality of basic (i.e., pre-university) education, including textbooks, teaching materials, and waining for teachersdesigned to enable them to use the improvements effectively, and by starting a process todevelop curriculum, materials, textbooks, and teacher training to be implemented in the longerterm.

3.17 Access, equity, and efficiency of the system would be strengthened through:

* Introducing programs and mechanisms to mcrease access to basic education inrural areas, for indigenous groups, and for girls.

7. Asa rni, mainc^ n, ,d often construction--of schools is carried out by pants, who ane also expected to purehsematerials such as notebooks and penis used by their childr an often to contribute to the purchase of instructionalmaerials by the tacher. In ual areas, conummuies supplement the teacher's ssaly with food contribions andsometms wih hosng. These contrbuons to opertg and invedment cost financing are not recorded.

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* Carrying out a plan to rationalize and strengthen sector finances with a view toimproving efficiency and equity of resource use.

* Consolidating information necessary to fonmulate a coherent, clearly prioritizedplan for infrastructre imnprovement, emphasizing repair and addition of sanitaryfacilities to schools.

* Introducing mechanisms for closer coordination with private sector groups, non-governmental organizations, and religious organizations that provide educationservices.

4. PHASE I OF THE REFORM: ACIION PLAN

Objectives

4.1 The first five- to seven-year phase of the Government's reform strategy focuses onimproving the quality and equity of primary education and the capacity of the public educationsystem to deliver education services effectively and efficiently. Key objectives during thisphase are to:

* bitroduce a reform of the organization of the public education system,including: (a) deconcentration of administration to regional and local levels; (b)establishment of mechanisms for comnumity pardicpation and stgthening thecapacity of entities at departmental level and below, inchludig localcommunities, to effectively oversee delivery of education services andparticipate in the process of decision making where pertinent; and(c) redefinition of the role of the central SNE as a normative regulatory agencyand planning coordinator.

O Strengthen the SN2's capacity to: (a) establish policy guidelines and monitortheir application; (b) plan and monitor execution of investments in the sector;(c) efficiently monitor administration of the education system; and (d) establishand monitor a framework for human resources that provides incentives forclassroom work and continuous professional strengthening.

* Rationalize sector financing.

* Develop and introduce a national core curriculum and provide guidance andsupport for the development of complementary, regional curricula.

* Improve access to education for those groups representing especially highilliterate and functionally illiterate segments of the population-women, rural,and indigenous populations.

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Action Plan

4.2 In addition to programs of policy measures previously summarized, the strategy includesprograms requiring additional resources for both investment and recurrent costs. Action plansthat require finmcing include transformation of the structure and operation of the educationsystem, improvement of pedagogical quality vith both long- and short-term objectves, andmanagement of the reform process. As previously noted, actions to transform the system willaffect both primary and secondary education, while improvements in pedagogical quality willfocus exclusively on primary education under the action plan for years 1 through 7.

4.3 System transforaon and strengthening would include: the introduction ofstructural changes to reorganize, deconcentrate, and strengthen the regular education system(para. 2.8). Reorganization would consist of:

* Restrucuring the new National Secretariat of Education.

Establishing a decentralized organizaional framework for regular education.

* Introducing a system of community consultation and oversight of the educationprocess through establishment of councils at all levels with speciflc attributesand responsibilities.

4.4 The new organizaional framework will be strengthened and transformed by:

* Integrating technical, professional, and administrative personnel at the centrallevel into the Civil Service Program and applying Civil Service criteria andprocedures to the hiring of personnel at lower levels.

* Training and providing technical assistance for techrical and administrvepersonnel at central and deconcentrated levels.

* Disseminating information and providing technical assistance for community andparent organizations.

* Establishing an information system to support curriculum development,education assessment, teacher training, provision of textbooks and materials,and investment planning.

4.5 Establishing a new framework for management of the teaching force will include theintroduction of:

* New criteria and systems for teacher certification, hiring, promotion,assignment, and benefits.

* Systems for management information and payment of teachers.

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4.6 Improvement of pedagogical quality would include a program of short-tenm qualityenhancement through provision of:

* School equipment and materials such as school library packages, maps, posters,and otier basic didactic materials, as well as teaching guides and otherpedagogic aids.

* In-service teacher training programs in pedagogical methods in teaching thebasic skills of reading comprehension, writing, mathematics, and basic science,as well as the use of didactic materials and library resources.

4.7 Support for long-term pedagogical transformation would consist of:

* Development of a core curriculum beginning with grades 1 through 8.

* Development and provision of textbooks, materials, and teachers' guides.

* Expansion of a tested bilingual education program.

* Development and application of pre-service and in-service teacher trainingprograms.

- Development of training programs for school administrators and pedagogicalsupervisors.

* Development of an education assessment program.

4.8 Support for the reform process would involve the establihment of a team under theSNE to manage, monitor, and provide technical support for the reform process; a program ofinformation dissemination and consensus building; and assistance in the design of subsequentphases of the reform and development of complementary investment projects. In addition toinfrastructure investments, the latter may include technical assistamce projects aimd at taclcingaspects of sector development that wiU not receive explicit focus in the flrst support operation,such as plans to improve the efficiency and quality of the universities.

Transforming and Strengthening the System

4.9 Restructuring the SNE, deconcentrang its administrative functions, introducingeffective mechanisms for community partcipation, and strengthening capacity at al levels areindispensable prerequisites for achieving both short- and long-term goals of quality and equityimprovement as well as for increasing the efficiency of the system. The Government's strategyfor reform addresses this problem directly by incorporating a comprehensive action plan fortransformation and development of the education system.

4.10 Approval of an education reform law by the National Congress and executive approvalof the accompanying regulations are the first steps in the rns ion process. Ihe nextsteps in the process are (a) structural, establishing a new organtional framework for the

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system, and (b) functional or operational, effectively transforming the behavior of participantsin the system so that each level and organizational unit performs the functions assigned to it andinteracts appropriately with other levels and units.

Introduction of the structural changes involves the following:

* Restructuring the National Secretariat of EduaWtion. A simplifiedorganizational structure would assign a clearly normative and developmentalsupport role to the SNE itself, reducing the nunber of personnel needed at thecentral level. The program of strengthening and deconcentration would involvethe hiring of additional personnel at regional and local levels, leaving the totalnumber of staff in the system roughly unchanged.

* Establishing a deconcentrated org al framework for the pre-university education system. The deconcentrated framework will requireorganizing school districts and ndcleos-groups of schools organized tofacilitate administration and pedagogical support-hiring administrative andpedagogical support staff at the decentralized levels-department, district,mcleo, school- and organizing school and nacleo councils, the chief vehiclesfor community or parental participation. (See Box 2.1)

* Introducing school councils. Under the reforned system, school and local(ncleo) councils would have both the right and responsibility to participate inthe formulation of local needs assessments and annual budgets to review theanal statement of the use of resources, to comment on the selecdon of schoolprincipals, to approve the appointment of teaching and administrative staff, andto oversee and comment on the performance of functions by all staff at thecorresponding level. The reform strategy provides encouragement and supportfor the organization of commumity or parents' organizations, but allowsflexibility for each organization to determine its own form of organization andparticipation, in order to ensure that participation effectively emerges from thecommunity itself. (See Box 3.1)

Operational transformation and strengthening would involve:

O Civil Service Reform Program. Establishment of the new structure willrequire hiring new staff at all levels of the system, according to objectivelydefined profiles defining the qualiflcations and experience required for eachposition and the application of transparent selection procedures. Profilles forstaff have been defined, corresponding to terms of reference for each position.To ensure selection and continuity of competent technical and professional staff,and to establish a transparent administrative system, guidelines for the selectionprocess would be defined and monitored by the Civil Service Reform Program(CSRP). Under the CSRP, about 80 technical and professional staff would behired at the central level; an additional 500 personnel would be hired at thedeconcentrated levels using CSRP procedures and criteria, but would not beformally under the CSRP. This is considered vital to introduce technical

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criteria and transparency in the hiring of staff under the new system. All postsat the central level would be financed from the existing current budget, theimplications of which will require careful analysis. The financial rationalizationand restructuring plan will take explicit account of these implications. To theextent that the wage bill for the new system camot be financed under thefinancial restructuring plan (which may include proposed increases in the sectorbudget), additional measures will be examined, including alternatives forphasing staff hiring under the CSRP, nobilization of regional and localfinancing, and (as a last resort) financing of some incremental recurrent costsfrom external sources.

* Technical assistance and training. In addition to introducing clear andobjective technical criteria for the hiring of all staff in the new system,transforming the operation of the system will require orientation, training, andtechnical assistance for technical, professional, and administrative personnel atcentral and deconcentrated levels. Technical assistance would be required inseveral areas such as information systems, curriculum development, teachertraining (both for upgrading of pedagogical skills and for orientation to workingwithin a framework based on community participation), and bilingual education.Such assistance would include in-service training of technical and professionalpersonnel in the corresponding units.

* Support tor development of community ns. To begin the process,the reform strategy entails disseminating information the public about therights of parents and communities to participate under the new system. Itprovides technical assistance and training to communities to help school andlocal councils develop the skills needed to assume a more active role, such asreview of budgets and monitoring resources. Support activities are programnedfor all five years of the first phase of the reform. (See Box 3.1)

* An integrated informafion system. Such a system is essential to both therestructuring of the system and the transformation of its operation. A systemto support the planning process is being tested and will be ready to beimplemented on a general scale by the end of 1993. Systems are in preparationfor processing and managing data about teachers (qualifications, experience,grade level) and payments, since such infrmation is necessary to start theprocess of teacher re-enlistment. A strategy for developing additionalsubsystems is also in preparation. During phase one, the strategy for furtherdevelopment of information subsystems would be reviewed andrecommendations made for future support of their implementation.

The frmework for management of the teaching force involves several importantconsiderations:

* Among other things, the education reform law would provide for a newteahers' statute that establishes a grading system and pay scale for which onlyactive teachers are eligible. Administrative ad support staff would be covered

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under separate employment provisions of the CSRP. The law would establishthe right (but not the obligation) of all teachers to join and pay dues to a union.It would also establish certification criteria to permit university graduates andgraduates of schools other than teacher training schools to qualify for teachingposidons. Under the new grading and pay scales, criteria for promotion wouldinclude performance, improved qualifications gained through in-service training,and experience. Separation of the teachers' pay scale from the Civil Servicepay scale would strengthen incentives for continued classroom work byexperienced teachers, while the introduction of quality criteria in the hiring andpromotion processes would permit gradual strengthening of the professionallevel of the teaching force. Under the new deconcentrated organization of thesystem, teachers would be hired at the school level. As the deconcentated unitsare established, become operational, and develop the capacity to manage thecontracting of teachers, this responsibility would be transferred to them. Untilthe deconcentration of the system is effected in a given district, however, theteachers would continue to be hired by the SNE at the national level.

0 In all circumstances, decentralized data collection and processing systems formanagement information and payment of teachers would be essental supportsto effective implemenation of the system. As a first step toward establishinga firm information base regarding the number, location, and qualifications ofteachers in the system and eliminating ghost teachers from the rolls, the reformstrategy includes a plan to re-enlist all teachers in the system. This wouldqualify them for participation in the new pay scale, which is planned to besignificantly more attractive than the current one. Upon re-enlistment, teacherswould present proof of their identity and their credentals regarding completedtraining.

Improving pedagogical quality

4.11 This program consists of the first five- to seven-year phase of a 20-year program toimprove the quality, efficiency, and equity of education, beginning with grades 1 through 8.It provides educational inputs that require litle or no design and development work. Theprogram develops inputs and support services necessary to carry out a cumcular and pedagogicreform and to improve access to education for marginalized groups, such as non-Spanishspeaking ethnic groups, rural populations, and girls.

4.12 To address the most critical needs of diverse groups, while pursuing the objectives ofimproving the equity of the system and increasing access, components are designed in modularfashion: the selection of input packages provided to a school would be made on the basis ofspecific criteria such as location and predominant language of the community or number ofteachers in the school. Final definition of the scale of each component will be made on thebasis of the results of the basic educational map, currently under preparation and scheduled tobe completed by the end of October 1993.

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4.13 Short-term quality enhancement. The focus of this program is to provide inputs thatare readily available and that will not become obsolete as the core curriculum is developed andlong-term decisions regarding teacher training are made. ","hile the longer-term pedagogicaltransformation program is underway, some improvements .an be brought about simply throughthe provision of basic inputs. The importance of this program is also linked to the need toshow as early as possible concrete benefits of the reform program as part of the publicawareness campaign. The program would consist of three interrelated sub-programs:

* Provision of school equipment and instructional materials such as maps,instructional posters, reference books, and general reading books for primaylevel and materials for the multigrade and bilingual education programs.

* Production and distribution of teaching guides and other pedagogic aids.

* Provision of in-service teacher training programs, to focus on pedagogicalmethods and strengthening the teaching of such basic skills as readingcomprehension, writing, mathematics, and basic science, and the use of didacticmaterials and library resources, as well as the special skills required formultigrade and bilingual education programs.

4.14 Support for pedagogical transformation. The present curriculum prescibes anexhaustive array of subjects and topics but does not clearly define learning objectives for anygrade or level. In addition, little or no flexibility is allowed for regional, cultural, andlinguistic diversity. As a result, materials and teacher training programs designed on the basisof the curriculum include a multitude of disparate topics but lack focus, fail to identify keyobjectives and basic skills, and often fail to relate to the target school population.

4.15 In particular, virtually no support is provided for instruction of Spanish as a secondlanguage for non-Spanish-speaking groups, effectively excluding them from full participationin the education system and consequently in the mainstream economy. (See Box 2.2)Identifying clear learning objectives is essential to the development of textbooks, materials,teaching guides, and teacher training programs, as well as assessing the performance of theeducation system at the national level.

4.16 hnproving the curriculum involves four general areas of activity: developing thecurriculum itself, providing essential materials, providing training, and assessment.Recognizing the heterogeneous character and history of the population and the diversity ofgeographical and climatic features, the Government's strategy is to develop a core curriculumbased on a set of clearly identified learning and skill objectives for each year and level.Textbooks, materials, and teacher training programs would be developed and tested againstidentified objectives and an education assessment program introduced to measure theachievement of those objectives over time. The core curriculum approach permits identificationand support for achieving key objectives and allows flexibility for each deparment to choosesupplementary materials based on regional history, culture, geography, climate, and economicactivity. To improve equity and expand access to education for indigenous and ruralpopulations, the strategy also entails support for expanding multigrade and bilingual educationprograms.

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4.17 Ihe pedagogical transformation program encompasses the following elements:

* Developing the core curriculum and providing support and guidance todepartments in developing complementary regional curricula.

* Developing ad providing textbooks, mate!ials and teachers' guides designedto introduce the core curriculum. The packages of materials would bedeveloped by topics, rather than by whole grades, to facilitate the early testingand subsequent production and distribution of the packages.

* Developing and applying pre-service and in-service teacher training programs.Three broad types of teacher training programs must be developed: in-servicetraining for teachers in the application of the new core curriculum and the useof the modular instructional packages; pre-service training for new teachers',and in-service traiing for continued strengtening of teachers' skills in the longterm. The normal schools currently in operation are expected to be part of thisprocess. Each will, with technical and financial assistance, prepare a plan fortransformation focusing on one of the areas of emphasis defined under thereform, and each would enter ito an agreement with a public or privateuniversity to help carry out its plan. Of the 24 nonnal schools currently inoperaton, 6 would be converted into bilingual education teacher trahiginstitutes; the remaining 18 would be converted into centers for training primarylevel teachers and/or school administrators. University graduates will also beeligible to teach, and universities will be able to offer specialized teacher-taining, school administration, and pedagogical supervision programs.

* Expanding a tested and revised bilingual education program. Tbis aspect of theprogram addresses one of the most importan factors inhibiting effective accessto education by indigenous groups the language barrier. Under the progrm,a bilingual education program developed and tested in Bolivia with assisancefrom UNICEF and subsequently revised would be extended to general usewhere appropriate. The program includes textbools, materials, taching guides,and teacher-training programs aimed at teaching basic reading and writing skillsin the mother tongue in the early grades and progressively shifting instructionto Spanish. (See Box 2.2)

* Developing training programs for school administrators and pedagogicalsupervisors. To begin the process of transformation in the way schools andclassrooms operate, the program would include technical assistance fordeveloping training programs for school administrators and pedagogicalsupervisors, and testing and implementing those programs to ensure theeffective application of all other pedagogical and curricular reforms.

* Developing an education assessment program.

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Supporting the reform process.

4.18 Effective management of the reforn process will require extraordinary technicalcapacity in the SNE, above the requirements of the ordinary operation of the system once itreaches its tasformed state. This capacity will be essential to enable the National Secretaryto make fimely decisions to guide the process as it evolves. To provide this capacity and toensure continuity with the preparation of the program, the Technical Team for Support of theEducation Reform (ETARE) has been transferred from the former Ministry of Planning andCoordinaion to the SNE. The reform strategy provides for further strengthening of theETARE as implementation of the program begins.

4.19 A second requirement for the success of the reform process is a strong campaign ofinformation dissemination and a continued program to build consensus at the community level,as well as at the level of political leadership. The reform strategy includes an action plan forpublishing and distributing information through various media and logistical support fororganizing debates or toini meetings at national, regional, and community levels. Theinformation and consensus-building campaign would be initiaed in the last half of 1993.

5. POTENTIAL ROLE OF EXTRNAL DONORS AND LENDERS

5.1 The support of the international community for implementing the educatonal reformstrategy is essential from several perspectives. First, given their sheer size, the inestmentrequirements and the short-term costs of institutional restructuring and g cannot bemet with domestic resources alone. Sound macroeconomic management requires that some partof the increased fiscal burden caused by te investments-and possibly some proportion ofincrmenal recurrent expenditures-be financed from extemal sources, on terms as soft aspossible. Second, the plan will require considerable technical support throughout the 20yearperiod, especially in the first 5- to 7-year phase. Finally, besides helping ensure appropriatedesign of the various phases of the strategy, external support for the plan will help to providecontinuity across changes of governments.

Proposed Assistance Stategy

5.2 The most important requirement of external support, apart from its size, is that it beclosely coordinated to ensure an appropriate sequence and pace of action plans and programs.It must avoid the introduction of small, disparate, donor-driven projects-the most commonlyencountered type of education investment project in the past. Close coordination will beparticularly important in the first phase of the strategy, when the demands of establishinginstitutional capacity in the SNE and the system as a whole will leave little implementationcapacity for additional unrelated activities.

5.3 Costs of first-phase programs requiring international financing include:

* Technical assistance and training costs related to institutional and pedagogicaltransformation and strengthening.

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* Acquisition and distribution of instructional materials and textbooks.

* Infrastructure construction, rehabilitation, and remodeling.

* Installation of an educational management information system, includingnecessary training and technical assistance.

* Development of an education assessment progran.

* Logistical support for information dissemination and community training.

5.4 Once investment priorides have been clearly identiliod and consistent plans developed,large amounts of financing will be needed to begin to address the massive infrastructure needssumamizd in Chapter 3. The results of the mapping exercise now underway (p&a. 4.12) willpermit the identification of specific investment projects to meet these requirements.

5.5 External financing required for the first phase could be provided in a series of projects,the first of which includes the programs outlined in Chapter 4. These can form the basis forprojects-perhaps geographically focussed-providing additional support for instittionalstrengthening, quality enhancement, and improved infrastructure. By the end of phase one, theprograms of institutional and pedagogical transformation would be well underway, and a seriesof projects designed to support speciflc action plans and investments to enhance quality andexpand coverage would be in progress.

IDA Assistance

5.6 The proposed strategy for assistance from the International Development Association(IDA) would support the first phase of the reform program descibed in Chapter 4. Keyfeatures of IDA's role are support for the Government in the development of its stregy andin the coordination of international assiste for the sector. IDA proposes to sortinplementadon of the first phase of the Government's strategy in cooperation with several bi-lateral donors. Once the key aspects of the action plan are underway, support for a series ofcomplementary projects is also proposed.

Other External Support

5.7 A number of bilateral and multilateral lenders and donors have expressed strong interestin helping to finance the program. Several potential financiers have participated bothfinancially and technically in the preparation and appraisal work and are considering financialsupport for implemening the first phase of the progran. Others have expressed interest infinancing specific complementary programs once the transformation of the system is underway.While coordination with a large group of agencies is a complex and taxing process, it is vitalbecause the framework for all investments and programs-and thus for all internatonalassistance to the sector-will be established during preparabon of the first phase.

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6. BENEFITS AND RISKS

Benefits

6.1 The Govenument's strategy will initate a long-term process of reform and inWrovementto strengthen the quality, efficiency and equity of basic education for all Bolivians. Improvedrelevance and quality of basic education will result in better-trained and trainable manpower forfte economy in the medium- to long-term. Realignment of priorities in sectoral spending willredress imbalances in resource allocation, thereby enhancing both efficiency and equity in theuse of public sector resources. Support for deconcentration of the education systm will buildinstitutional capacity at departmental and local levels, helping to lay the basis fordecentralization. Establishment of a streamlined organizational structure for the SNE,combined with objective technical critia for hiring and continued training, will form the basisfor developing capacity at the national level for policy formulation, cufriculum development,and pedagogical support. Introduction of mechanisms for community participation in keyeducational decisions will fortify the effliciency and transparency of service delivery andresource use by making the system responsive and accountable to its cLients. The exercise oftheir new responsibilities will in themselves strengthen communite' ability to express theirdemands and organize and manage self-help activities-all pre-requisites for truedecentralization.

Diffculties and Risks

6.2 The education reform strategy under consideration is ambitious and difficult. Aspreviously noted, the reform must be envisioned as a process, involving not only a complex setof actions, but the partcipation of many diverse groups. Consequweny, it must beacknowledged at te outset that implementation of a preset plan is unrealistic; progress inachieving changes will be uneven across programs, departments, and localities.

6.3 There is unanimous agreement in Bolivia at the education system is ailing and thatreform is needed. At the same time, human nature is resistant to change-whether from adesire to protect vested interests or simply fear of the unfamiliar. Opposition is expected fromthose who stand to lose economic and political power, specifically entrenched bureaucrats andleaders of the teachers' union. Therefore, managing the reform proces will require firmcommitment and strong leadership by the Government. The Governm will need to buildsufficient political and popular support; maintain a firm commitment to establish sufficientinstitutional capacity for carrying out the pedagogical quality improvement and developmentobjectives; and develop a sound capacity for policy formulaton and investment planning. Allof these aspects will be especially critical in the flrst years of the refom It will also beimportant that strong commitment be suswtained through the long term-involving seraldifferent Administrations.

6.4 It will be helpful to start the reform program in the early days of the new government,to take advantage of the period when its strength and base of support is expected to be greatest,and to ensure continuity of strong leadersip during the critical fit years of the program.Other measures for reducing opposition to the reform include designing programs of publicawareness and consensus building to inform the public of what to expect and when; involving

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the community and interested groups, especially teachers, in the process; adopting realisticimplementation plans in order to produce benefits on a timely basis; incorporating technicalassistance to strengthen implementation capacity; and implementing enhanced supervisionarrangements.

6.5 Additional risks stem from macroeconomic factors: unfavorable developments resultingin slowing of growth, or shortfills in official capital inflows, may adversely affect theavailability of national funds for implementation and continued commitnent to increasingbudget resources for basic education. The Bolivian economy will remain fragile until thecountry is able to diversify its export base. IDA's assistance strategy is to help the Governmentencourage such diversification through support for continued strong economic management andimprovement of the environment for private sector activity.

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ANNEX

List of Tabls:

I: Esdmated Requirenents for Full Coverage of Current Prmnary Level Population

II: Projected Requirements for Full Coverage of Primary Level Population through2015

III: Esimated Requirements for Full Coverage of Current Secondary LevelPopulation

IV: Projected Requirements for Full Coverage of Secondary Level Popuationthrough 2015

Lit of Figur:

Figure 1. Higher female education improves productivity ad social welfare.

Figure 2. The education gender gap influences economic productivity and social welfare.

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Table 1: Projected Requiremeots for Full Coverage of Current Primary Level Population

1990

Full Coverage Full Coverage

Current/ (No (Current Rate

Actual Repetition) 1/ of Repetition)2/

Number of Primary School-aged Children (6-14) ('000) 1,672 1,672 1,672

Target Enrollment Rate (gross) 3/ 75.7 100.0 140

Number of Children Enrolled (gross) ('000) 1,265.8 1,672 2,341

Investment

InfrastructureNumber of classrooms 18,000 41,800 58,520

Number of new classrooms needed 0 23,800 40,520

Cost of new classrooms (USS mn) 476.0 810.4

Number of classrooms to be furnished/equipped 18,000 41,800

Cost(USS mn) 90.0 209.0

Number of Schools to be Upgraded 5,600 5,600 5,600

Cost (USS mn) 560.0 560.0

Number of School Libraries (Reading Corners) 9,967 12,753

Cost of Libraries/Reading Corners (USS mn) 2.0 2.6

Total Infrastructure Cost 1,128.0 1,582.0

Teacher TrainingNumber of teachers needed 57,100 55,733 78,027

Number of new teachers to be trained (pre-service)/

(No. of surplus teachers) .(14,907) (1,367) 20,927

Cost (USS mn) 4/ 52.3

Number of teachers to be re-trained 55,733 55,733

Cost (USS mn) 55.7 55.7

In-service traihing (Number of teacher participants/year) 11,420 11,147 15,605

Cost (USS mn) 2.3 2.2 3.1

Total training costs (USS mn) 2.3 58.0 111.2

Total Investment S/ 1,186.0 1,690.0

Recurrent Coats

TeachersTotal number of teachers needed 57,100 55,733 78,027

Average salary (USS/year) 1,392 1,426 1,270

Total primary teacher wage bill (USS mn) 79.5 79.5 99.1

(% rise in real avg. teacher salary, from

efficency savings) 2.5

Wage bill, with 25% increase in salaries 99.3 123.9

Materials, textsCost of texts, materials packages per student 10 10

Total cost, texts, materials 0.2 16.7 23.4

Total Recurrent Costa SI 118.3 1S0.4

Total Costs of Primary Schooling 81.1 1,304.3 1,840.4

1/ Indicates costs of full coverage of present school age population, achievement of target class sizes, and provi-

sion of adequate infrastructure.2/ Requirements for full coverage of current population, at current repetition rates.

3/ Enrollment figures are available for gross enrollments only.

4/ @USS SOO/yr. s yrs.

S/ For purposes of this table, investment costs include infrastructure and some teacher training (pre-service and

re-training) costs. Recurrent costs include teachers' salaries, in-service training, and materials.

- 40 -

Table 11: Projected Requirements for Full Coverage of Primary Level Population through 2015(Assuming gradual reduction of current repetition rate and gradual increase in coverage)

Targets/RequirementsCost

Actual 1993- Totals(1990) 2000 2005 2010 2015 1993-2015

Number of Primary School-aged Children (6-14) ('000) 1,672 1,999 2,212 2,344 Z,440

Target Enrollment Rate (gross) 1/ 75.7 90.0 100.0 110.0 115.0

Number of Children Enrolled (gross) ('000) 1,265.8 1,799 2,212 2578 Z,806

InvestmentInfrastructureNumber of classrooms needed 18,000 44,978 55,300 64,460 70,150Number of new classrooms needed 3/ 0 28,699 39,819 11,870 8,849

Cost of new clasurooms (USS mn) 574.0 796.4 237.4 177.0 1,784.7

Number of classrooms to be furnished/equipped 31,484 10,323 9,160 5,690

Cost(US$ mn) 157A 51.6 45.8 28.5 283.3Number of Schools to be Upgraded 6,000 3,598 433 1,473 1,716

Cost (USS mn) 359.8 43.3 147.3 171.6 722.1Number of School Libraries (Reading Corners) 10,030 8,357 3,505 2,423

Cost of Libraries/Reading Corners (USS mn) 2.0 1.7 0.7 0.5Total Infrastructure Cost 1,091.2 891.3 430.5 377.1 2,790.1

Teacher TrainingNumber of teachers needed 57,100 59,970 73,733 85,947 93,533

Number of new teachers needed 4/ 17,863 22,235 22,629 19,728

Number of teachers to be trained (pre-service) 17,863 22,235 22,629 19,728

Cost (USS mn) 5/ 44.7 55.6 56.6 49.3 206.1

Number of teachers to be re-trained 25,264 10,894 0 0Cost (USS mn) 12.6 5.4 0.0 0.0 18.1In-service training (Number of teacher participants/year) 0 0 6,789 5,918

Cost (USS Mn) 0.0 0.0 1.4 1.2 2.5

Total training costs (USS mn) S7.3 61.0 57.9 50.5 226.8

Total Investment 6/ 1,148.5 9524 487.0 426.4 3,014.3

Recurrent CostsTeachersTotal number of teachers needed 57,100 59,970 73,733 85,947 93,533

Average salary (USS/year) 1,392 1,955 2,248 2,585 2,973

Total primary teacher wage bill (USS mn) 79.5 117.2 165.8 222.2 278.1(% increase in real average teacher salary,

with respect to prev. period) 40.5 15.0 15.0 15.0

Materials, textsCost of tets, materials packages per student 10 10 1n 10Total cost, texts, materials 0.2 l8o 22.1 25.8 28.1

Total Recurrcnt Costs 6/ 135.2 187.9 249.4 307.3

Total Costs of Primary SchoolingCumulative Total (investment + Cumulative Recurrent) 81.1 2,095.1 1,891.8 1,733.8 1,963.1 7,683.9

Average Annual Expenditures on Primary Education 2993 378.4 346.8 392.6 349.3

Annual Avg. Expend. as a % of projected GDP 4.3 4.6 3.5 3.3 4.31/ Enrolment figures are available for gros enrollments only.2/ This is a very rough estimate of the number classrooms in existence. Available data for numbers of school classrooms, shifts is

is widely variable.3/ Caluclation of requirements for new infrastructure assumes replacement of old infrastructure at rate of 1% per year.

4/ Calculation of requirements for new teachers assumes 3% annual attritior..S/ @USS 500/Sy. x 5 yrs.6/ For purposes of this table, investment costs include infrastructure and some teacher training (pre-service and re-training) costs.

Recurrent costs include teachers' salaries, in-service training, and materials.

- 41 -

Tabic III: Estimated Rcquirements for Full Coverage of Current Secondary Level Population

1990Full Coverage Full Coverage

Current/ (No (15%Actual Repetition) 1/ Repetition)2/

Number of Secondary School-aged Children (15-19) ('000 767 767 767Target Enrollment Rate (gross) 3/ 28.9 100.0 115Number of Children Enrolled (gross) ('000) 221.9 767 882

Investment

InfrastructureNumber of classrooms needed 4,440 19,175 22,051Number of new schools needed 4/ 737 881Cost of new schools (USS mn) 515.7 616.4

Number of classrooms to be furnished/equipped 4,440 4,440Cost(US$ mn) 22.2 22.2Number of Schools to be Upgraded 222 222 222Cost (USS mn) 22.2 22.2Number of School Libraries 222 769Cost of Libraries (USS mn) 0.7 2.3

Total Infrastructure Coat 560.8 663.1Teacher TrainingNumber of teachers needed 10,420 25,567 29,402Number of new teachers to be trained, pre-z vice/

(No. of surplus teachers) (3,023) 15,147 18,982Cost (USS mn) 4/ 37.9 47.5

Number of teachers to be re-trained 10,420 10,420

Cost (US$ mn) 10.4 10.4In-service training (Number of teacher participants/eaz 2,084 5,113 5,880Cost (USS mn) 0.4 1.0 1.2

Total training costs (US$ mn) 0.4 49.3 59.1Total Investment S/ 610.1 721.0

Recurrent Costs

TeachersTotal number of teachers needed 10,420 25,567 29,402Average salary (US$/year) 1,505 1,505 1,505Total secondary teacher wage bill (USS mn) 15.7 38.5 44.2Wage bill, with 25% increase in salaries 19.6 48.1 55.3

Materials, textsCost of texts, materials packages per student 10 10Total cost, texts, materials 0.2 7.7 8.8

Total Rc:urrtnt Costs 5S 472 54.2

Total Costs of Secondary Schooling 16.0 657.3 775.2

1/ lindicates costs of full coverage of present school age population, achievement of target class sizes, andprovision of adeqaute infrastructure.

2/ Requirements for full coverage of current population, at current repetition rates.3/ Enrollment figures are available for gross enrollments only.4/ Assumes an average of 20 classrooms per school.5/ @USSS00/yr. x S yrs.6/ For purpose of this table, investment costs include infrastructure and some teacher training (pre-service and

re-training) costs. Recurrent costs include teachers salaries, in-service training, and materiats.

- 42 -

Table IV: Projected Requircments for Full Coverage of Secondary Level Population by 201S(Assuming gradual reduction of current repetition rate and gradual increase in coverage)

TargetVRequirementsCost

Actual 1993- Totals(1990) 2000 200S 2010 2015 1993-2013

Number of Seondary School-aged Children (5-19) ('000) 767 963 1,045 1,179 1,267Target Enrollment Rate (grows) 1/ 28.9 55.0 70.0 85.0 100.0Number of Clildren Enrolled (gros) ('000) 221.9 530 73 1,002 1,267

InvestmentInfrastructureNumber of clasaooms needed 4,440 13,241 18,288 25,054 31,675Number of new schools needed 3/ 0 461 285 383 392

Cost of new schools (U mn) 0.0 199.3 2682 274.7 742.2Number of classrooms to be furnised/equipped 4,440 5,046 6,766 6,621Cost(USS mn) 222 252 33.8 311 114ANumber of Schools to be Upgraded 444 1,059 504 691 876Cost (US$ mun) 105.9 50.4 69.1 87.6 313.0Number of School Libraries (Reading Cormers) 461 285 383 392Cost of UbrarieWReading Corners (USS mn) 1A 0.9 1.1 12

Total Infrastucture Cost 129.5 275.8 3722 3966 1,1742

Teacher TrainingNumber of teachers needed 10,420 17,655 24,383 33,405 42.233No. of new teaches needed (= No. to be trained) 4/ 9,971 9= 12,466 13,547Cost (USS mn) S/ 49.9 46.1 623 67.7 226.0Number of teachems to be re-trained 4,610 1,988 0 0Cost (USS mu) 23 1.0 0.0 0.0 33in-service training (No. of tacher participants/year) 0 0 3,740 4,064Cost (US$ mn) 0.0 Q0 0.7 0.8 1.6

Total training costs (US$ mn) 52;2 47.1 63.1 685 230.9Total Investment 6/ 181.7 322.9 434.6 464.3 1,4035

Recurrent CoAtWage BillTotal number of teaches needed 10,420 17,655 24,383 33,405 42.233Average saiary(USSlyear) 1,507 1,955 2,248 2,S85 2,973Total secondary teacher wage bill (USS mn) 15.7 345 54.8 86.4 125.6

(% increase in real average teacher salary,with respect to prev. peiod) 15.0 15.0 15.0 15.0

Materials, textsCost of texts, materials packages per student 1S 1S 1S 1S

Total cost, texts materials 02 7.9 11.0 1S.0 19.0Total Recurrent Costs 61 42JS 65 141L1 145.4

Total Cosa of Secondary SchoolingCumulative Total (Investment+ Cumulative Recurent) 16 478.9 6SL9 94S3 1,1913 3,267.4

Average Annual Expenditures on Secondary Education 6&4 130.4 189.1 2383 148.5

Annual Avg. Expend. ass % of projected GDP 1.1 1.7 2.1 2.2 1.71/ Enrollment figures are available for gross enrollments only.2V This s a vey rough estimate of the numberr caswoms in existence Available data for number. of schools classooms, shifts is is widel

variable.3/ Caluclation of requirements for new infrastructure assumes 20 clasmooms per school and replacement of old infrastructure at rate of II

per year.4/ Calculation of requirements for new teachers assumes 3% annual attrition.

S/ @USS S00/yr. XS ts.6/ For puwpoes of this table, invtment costs include infastucture and some teacher training (pre-service and re-training) costs.

Recurrent costs include teaches' salarie inrice training, and materials.

-43 -

Figure 2.2(a) Higher female education improves economic productvity and social welfare.

A scatter plot of countriesEnrollment refers to gross enrollment rates of girls in primary schools.

GNP per capita Life Expectancy

us$ Years

10000 000 80

80X;~~~ 0000*8000 { 60-0 0~~~~~~~0 a600

00 a20 00 4

6000 birt 0a~~~~~~~~~~C

2 0%< 00;0 a 00 20

2000 - 00

0 ZS I0 'S

0 20 40 60 80 100 120 0 20 40 60 80 100 120

Enrollment Rate Enrollment Rate

infant Mortality Rate Total Fertility Rate

Deachs/1000 births

250 100

000~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'0c0~~~~~

200 8 o8 @@~~~~~~~~~~~~~~~~~- . j 0150 0 00 0b f -00i 000

Ooo0 0 00 000co 0'3 10 00 00~~00 b !%'1C`-V-VC Sw-qp~~~~~0 ofo @0

a ~ ~~~~~~~~~ 0 00 (IV& b0 J~~~~~ 0 a0 0Cu @0080 01.;

500 -0,C 0 2 00-A00

0 co-

0 00 20 40 00o s0 10O 120 0 20 40 60 80 100 120

Enroiltnent Rate Enirollment Rate

From E.M. King, 'Educating Girls and Women: Investing in Development.' 1990. World Bank.

-44 -

Fligure 2.2(b) Tne education gender gap influences economic productivity and social welfre.

A scauer plot of countriesThe gender gap is defined as the ratio of male to female gross enrollmcnt rates.The horizontal axis is in a logarithmic scale.

-C- Line A: Countries with almost zero gender gap

- Lin B: Males' enrollment rate at least 40% higher than females'

Life Expectancy

so

60 - 0 C

40

20 - $- incALineB

O100 1000 10000

GNP per capita

Infant Mortality Total Fertility Rate

DeathsI1000 births300 10

LineA

00a -- LineB 8 OGO 0100 1000 0o a a 00d

200 per c G -- r co

Fro E.. Kig ZEuatn Gil ati Woen anetl nDvlpet. 90 VrdB

000 0 ~o

100 N"~~~~~~~~~~~~~~~~~~~~~

6 2 ' ~~~~~~~~-0- Linie B

0 0100 1000 10000 100 1000 10000

GNP per capita GNP per capita

From E.M. King, 'Educating Girls and Women: Investing in Development.* 1990, World Bank.

-45 -

SEECtED REFERENCES

ETARE. 1993. DiomIzackdn Clwcrdar. LineaNenmos para una PoI(ca Cwrfcular. LaPaz.

ETARE. 1993. Reforma Educatlva. Propuesta. Cuadernos de la Reforma. La Paz.

ETARE. 1993. Semnarlo: Reformas Educatvas Comparadas. Memoria. La Paz.

ETARE. 1993. Semnarlo TaUer:- La Educacdn Intercudural Bilngae. La Paz.

King, E.M. and M.A. Hill. 1993. Women's Education inDeveloing Countries: Barriers,Benefits and Polici. World Bank. Baltimore: Johns Hopkims University Press.

King, E.M. 1990. "Educating Girls and Women: Investing in Development.'World Bank, Population and Human Resources Department. Washington, D.C.

Lockheed, Marlaine, and Adriaan Verspoor. 1991. ar rimar Educationin3;1ftiog Countries. New York: Oxford University Press.

Psachaopoulos, G., and H. Panos. 1993. "Indigenous People and Poverty in LainAmerica: An Empirical Analysis." Latin America and the Caribbean Tehical DeparmentRegional Stdies Program, Report No. 30. World Bank, Washington, D.C.

Rondinelli, D.A., J. Middleton, and A.M. Verspoor. 1990. flaWng. EAucgti Reforms inDeveloping Countries: The Contingency Amproach. Durham: Duke Press Policy StudiesDuke University Press.

Viliareal C., Rodrigo. 1993. 01sts de la Universidad Bolviana. Qmde 4 de-lorei tLd. UDAPSO. La Paz.

UNESCO. Variousyears. Statisil Year Book. Paris.

Unted Nations Development Programme. Various years. Human Development Rport.New York: Oxford University Press.

Winkler, D. 1993. "The Design and Administration of Intergovernmental Transfers." LatinAmerica and the Caribbean Technical Department Regional Studies Program, Repont No. 29.World Bank, Washington, D.C.

-46 -

Wolff, L., E. Schiefelbein, and J. Valenzuela. 1993. "Improving the Quality of PrimaryEducation in Latin America and the Caribbean: Towards the 21st Centuy'. Latin Americaand the Caribbean Technical Deparutment Regional Studies Program, Report Report No. 28.World Bank, Washington, D.C.

World Bank. 1993. The East Asian Miracle: Economic GroEth and Public Policy.World Bank Policy Research Report. New York: Oxford University Press.